Barnett proposes per-capita carve-up for GST cash

Premier Colin Barnett has proposed the bulk of GST revenue should be distributed on a per capita basis, with the remainder distributed to the states based on need.

Mr Barnett said, as an example, at least 60 per cent of the tax's revenue should be distributed on a population basis.

South Australian Premier Jay Weatherill described the bid to have the bulk of GST revenue distributed on a per capita basis as "deeply selfish", saying WA did not want to share the benefits of the mining boom.

"Western Australia has a very short memory. It was only a few short years ago that they stopped being a receiver of money and are now a net contributor back to the rest of the nation," Mr Weatherill told reporters in Canberra.

"Not only is it deeply selfish, it's completely contrary to principle, it's contrary to the way in which this nation was formed."

Mr Barnett said he was disappointed by Mr Weatherill's comments.

"That has been the problem of commonwealth-state relations, one state sort of bitching about the other state," the Liberal leader told ABC Radio.

"That's not the way forward in a modern federation.

"It's about time we raised this level of debate rather than one state grizzling about another or grizzling to the Commonwealth."

Mr Barnett conceded WA had been financially propped up by the other states for decades before the boom "but you never have the degree of differences between states that you've got now".

"And Western Australia has more than repaid anything it received in the past."

He wants a 75 per cent floor on GST distributions and was pushing his case at a Council of Australian Governments meeting in Canberra on Wednesday.

WA received 72 cents in the dollar in 2011/12, will get 55 cents for each dollar this financial year and is expected to get even less in coming years.

Mr Barnett said Victoria, NSW and Queensland were "pretty close" to broadly agreeing with WA in calling for the majority of GST funds to be distributed according to a state or territory's population.

"That's what I hope can be achieved out of these two days," he said.

"And I think if the big four states agree, then that's a powerful argument for going that way because those states represent 90 per cent of the Australian economy and 90 per cent of Australia's population."

Any change would be phased in slowly over a period of time so no state or territory was disadvantaged during the transition, he said.

"Obviously Northern Territory, South Australia, Tasmania would be looked after."

Opposition Leader Mark McGowan suggested a higher floor of 80 cents in the dollar.

Mr McGowan called for bipartisanship on the issue, but also pitched to electors that they would get a better GST deal if they elected a Labor government in state elections in March.

"A simple, certain, bipartisan approach is what's required ... that's the most reasonable way forward," he told reporters in Perth.

He also reiterated that Mr Barnett personally approved the original GST deal in 1999 when he was treasurer.