Canberra likes fiscally-independent states

Federal Finance Minister Mathias Cormann says it's entirely sensible for Western Australia's Liberal Party to explore the state's financial independence.

Australian Finance Minister Mathias Cormann

Mathias Cormann supports the WA Liberal Party's plan to explore financial independence. (AAP)

The federal government would like other states to follow the lead of West Australian Liberals and look at becoming more financially independent.

The party's WA conference on Sunday voted to financially secede the state from the federation.

The "WAxit" policy motion initially called for a committee to examine the option of WA becoming an independent state but was watered down after heated debate.

Federal Finance Minister Mathias Cormann says the commonwealth has long talked with state and territory governments about exploring more financial independence.

"We think it's entirely sensible for states to continue to explore ways to become more financially independent from the commonwealth," he told ABC radio on Monday.

"The best way to do it is to strengthen growth in their respective economies and to pursue their own source of revenues."

The WA Liberals, who are in opposition, have also indicated they are contemplating a legal challenge over the GST revenue carve-up.

Labor MP Matt Keogh criticised Malcolm Turnbull for failing to address Western Australians' concerns regarding their states' share of the GST.

"They're voting to financially leave the Commonwealth. That's how much confidence the West Australian Liberal party has in this government right now," he said.

Labor has proposed a $1.6 billion fund - a 'top up' - to bring Western Australia's share of GST up to 70 cents in the dollar by 2019.

"[Malcolm Turnbull] delivered absolutely nothing when it comes to GST."


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Source: AAP


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