A pledge from federal Labor to invest in a $1.6 billion Fair Share for WA Fund has been cautiously welcomed by Premier Mark McGowan, who hopes it encourages competition to improve WA's GST shortfall.
Federal Labor leader Bill Shorten made the announcement at the Labor state conference in Perth on Saturday, saying the fund would be legislated and all proceeds would go to WA infrastructure projects.
WA receives 34 cents for every dollar of GST revenue it collects, and while Labor's policy does not change the current formula, Mr Shorten says it will bring commonwealth funding for the state up to the equivalent of a 70 cent floor.
Mr McGowan described it as a "giant leap forward" and welcomed each federal political side competing for the affection of West Australians.
"At last we have someone taking national leadership on the GST issue", he told reporters.
"Mr Shorten has led the way and now I call on Malcolm Turnbull to take action."
But Mr McGowan conceded the funding fell well short of the $10 billion he wanted under a per capita GST system.
"I'd like to see more in time, obviously ... the submission we put forward to the (Productivity Commission) inquiry had 12 different options, one of which was per capita, one of which was an 80 cent floor in the dollar, one of which was separating some of the mining royalties from the GST distribution system," he said.
WA opposition leader Mike Nathan accused Mr Shorten of playing catch up with the current system of federal GST top-up payments.
"This is just Bill Shorten taking with one hand and giving a little bit back with another," he said.
"What we need is reform of GST, not higher taxation and not higher taxation and giving a little bit back. It's just a cheap trick."
