WA package sensible: Bowen

Shadow treasurer Chris Bowen says the Abbott government is playing catch-up to a suggestion from Labor to provide additional funding for WA .

Shadow treasurer Chris Bowen has backed the federal government's compensation package for WA. (AAP)

Shadow treasurer Chris Bowen has backed as sensible the Abbott government's decision to provide almost $500 million to Western Australia to compensate for the state's dwindling share of GST revenue.

However, he also described it as a belated catch-up to what Labor had suggested previously.

"We welcome this as a sensible step. Of course, the biggest problem for WA's finances is (Premier) Colin Barnett's mismanagement," Mr Bowen told reporters in Melbourne on Wednesday.