The state opposition has called the Liberal government insensitive after Premier Colin Barnett confirmed he was considering scrapping plans to name the new Northbridge theatre after actor Heath Ledger.
The former Labor government announced in July the new theatre would be named after the Perth-born actor, who died in January due to an accidental drug overdose.
Shadow Minister for Culture and the Arts Ben Wyatt called the Premier's comments "short sighted" and "undignified".
"This insensitive and undignified behaviour reflects poorly on the Premier and will unfortunately also result in damage to Perth's reputation," Mr Wyatt said.
"Heath's family were delighted and honoured by the tribute.
"The announcement was also embraced by the international arts community, received international media coverage and put Perth's new theatre on the map.
"Premier Barnett's small town thinking may now see our city back in the spotlight for all the wrong reasons. "
Mr Wyatt added that Mr Barnett should have told the Ledger family the name was up for review before announcing it.