Prime Minister Scott Morrison is promising all states and territories will be better off under his changes to the GST.
It would see every jurisdiction receive at least 75 cents back for every dollar they contribute.
The proposal looks certain to sail through parliament with Labor's support.
Speaking on a three-day visit to WA, Mr Morrison says it's a great reform.
Labor M-P Anne Aly says she sees no reason why the federal Opposition wouldn't support the government's proposed changes to the G-S-T distribution.
Speaking to Sky news, she says it's good to see the Coalition has taken up Labor's suggestion.