West Australian Opposition Leader Mike Nahan has written to Bill Shorten urging him to back a better GST distribution deal, saying the state Labor government has "failed" to get their federal party leader on side.
Labor's WA federal members said in their submission to the Productivity Commission that no state should be worse off under any GST changes, which Dr Nahan said meant they did not support reform.
WA currently receives 34 cents in every GST dollar, while most other states get in the range of 89 cents to 181 cents.
Dr Nahan said while he agreed with Premier Mark McGowan's submission calling for the majority of GST distribution to be on a per capita basis, Mr McGowan had failed to get Mr Shorten and his colleagues to agree.
He said Labor's federal members in WA had put the interests of their party over the citizens they represented.
"Without the support of federal Labor, without a commitment in Canberra by both sides, there will be no change, no long-term reform of GST," Dr Nahan told reporters on Thursday.
Dr Nahan said the Liberals in contrast had admitted there was a problem, and had committed to a floor and the Productivity Commission inquiry.
"The problem with the prime minister is his support for us is being white anted because (Mr) Shorten is going to Tasmania and South Australia and undermining reform. That's why we need bipartisanship," Dr Nahan said.
There have been mixed views about changing the system to benefit WA among 43 submissions made so far, with the Australian Chamber of Commerce and Industry and Tasmanian Greens not supporting change, and calls for more transparency about how GST is allocated.
Meanwhile, BHP's submission to the Productivity Commission has called for a portion of mining royalties to be quarantined from the GST carve-up, claiming it would provide an incentive to invest in resources.
Treasurer Scott Morrison said last month states and territories that did not develop their gas resources might be penalised under changes to the GST.
The Productivity Commission is due to report to the government by the end of January.
