South Australia has no enthusiasm for increasing the GST and any move to change how the revenue is distributed among the states would be strongly opposed by the SA Government, Attorney-General John Rau says.
He says a shift to have states keep the GST they raise would severely disadvantage smaller states like South Australia.
"That would be disastrous for South Australia if that occurred. That would punch a huge hole in our budget," Mr Rau told reporters on Friday.
"If you're talking about increasing the rate of the GST, we have never advocated that position."
However, Mr Rau seemed to leave the door ajar should a planned federal government review of taxation arrangements back an increase.
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"Any federal government that puts up a proposition about taxation and converses with the states would expect the states to respond and talk to them about it," he said.
"I can't see any enthusiasm on the part of South Australia to increase the rate of the GST.
"But if the commonwealth comes out with a conversation about that, well obviously South Australia won't refuse to sit at the table and listen to them."
The minister's comments came after West Australian Liberal Premier Colin Barnett urged Prime Minister Tony Abbott to "take some leadership" and raise the GST.
