Western Australia's Liberal party conference has voted in favour of a motion to financially secede the state from the federation, despite one member warning there was a risk of being labelled the "lunatic fringe".
The non-binding "WAxit" policy motion, put forward by the Brand division, called for the establishment of a committee "to examine the option of WA becoming an independent state within the Commonwealth".
But after hot debate on Sunday, the motion was amended to becoming "financially independent" as suggested by state president Norman Moore.
It passed 89-73, which Mr Moore said should send a strong message to Canberra.
"It tells them that Western Australians, particularly Liberal party Western Australians, are not happy with the way in which WA is being treated," he told reporters.
"The GST is symptomatic of that but it is more than that.
"Because we're a long way from Canberra, we feel that we're being ignored and our interests aren't being taken into consideration by both sides of politics."
Mr Moore, who previously believed WA should be a separate country, said fiscal independence could be achieved by government decree.
He suggested states raise all personal income tax and company tax, and pay the Commonwealth for the services it provides, creating "a bit of competitive federalism".
But he conceded it was unlikely to happen.
"I don't know if any federal government is ever going to agree to give away authority. That's the nature of politics: it's all about power."
State opposition leader Mike Nahan was against the motion, but said it was an understandable "expression of frustration".
"Rivers of cash are pulled from under us and we're left in debt and deficit. It's not right," he said.
Seeking GST reform was preferable to severing ties with the rest of the nation, he said.
"Fix our federation, don't bust it."
Rick Palmer, who drafted the motion, said WA Liberals needed to "make the noise ... rather than just whinge about it in corners" but another party member said they risked being labelled the "lunatic fringe".
Federal Deputy Opposition Leader Tanya Plibersek said it was "a real vote of no confidence" in Prime Minister Malcolm Turnbull.
"It's pretty terrible isn't it that the West Australian branch of the Liberal Party have so little faith in Malcolm Turnbull and his government that they want to leave the federation that they're part of," she told reporters in Sydney.
Liberal Senator Mathias Corman said WA would remain an important part of the federation.
"The motion which was adopted was very different to the one that was originally proposed," he said.
"To explore ways to become more financially independent from the Commonwealth is something that I would encourage all states to do."
