West Australian Premier Colin Barbett has backed Canberra's review of the distribution of the GST, saying it will examine his proposal for a 75 cent floor for Western Australia.
The federal government has launched a review of how the goods and services tax is distributed between state governments.
Prime Minister Julia Gillard says it will be a simpler and fairer system.
Mr Barnett has been a vocal critic of the current system saying the GST share for Western Australia is decreasing and there needs to be certainty on the revenue his state will receive to allow the government to make long term investment decisions.
Swan rules out raising GST rate
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Federal Treasurer Wayne Swan yesterday ruled out increasing the rate of the GST.
The government has appointed former NSW premier Nick Greiner, former Victorian premier John Brumby and South Australian businessman Bruce Carter to conduct the GST review.
The review has been particularly welcomed by the large resource states of Western Australia and Queensland, which feel hard done by under the current system.
Mr Swan acknowledged "discontent" about the current formula was part of the reason for the review.
"We think it's timely to have a root and branch review," Mr Swan told ABC television.
He said inefficient states could be rewarded under the current formula.
But Mr Swan said he absolutely ruled out any increase in the GST to generate more revenue.
"Absolutely rule that out," he said.
"Not on the table, has never been on the table and will never be on the table. We're not increasing the rate or the base of the GST."
Mr Swan conceded some states could lose out if there are changes to the GST carve-up formula.
"There's only one pot of revenue," he said.
