FEDERAL Opposition Leader Tony Abbott has already begun planning with Western Australia's Premier Colin Barnett on potential changes to GST distribution.
And in return, the WA Liberal supremo has vowed to hammer the Gillard government over the issue in the build-up to the federal election on September 14.
Already a vocal critic of Ms Gillard over the GST share received by WA, as well as the mining tax, Mr Barnett revealed on Wednesday he had begun consultation with Mr Abbott in the event of a change of federal government.
"I have had a telephone conversation with Tony Abbott in the last week and we are talking about trying to fix the system. I think he at least understands the problem," Mr Barnett said.
"It is grossly certainly unfair that we now get 45 cents in the dollar, that has never happened in Australia's history and it shouldn't happen.
"It affects services here, education and health predominantly, but it also holds back the Australian economy."
As Ms Gillard's government continues to stare at a potential wipeout in the west in September, Mr Barnett said he would personally be putting the "facts" about the state's GST share to the public in the election build-up.
"Just a few years ago 50 per cent of state government revenue came from the Commonwealth, that is down to 35 per cent," Mr Barnett told ABC radio.
"So you basically have an independent WA within an Australian federation, so we are going to have raise money ourselves.
"What I want is something that secures long-term funding. The GST is supposed to be the state's revenue source. So I will be presenting to the WA public the facts on the GST in the lead-up to the federal election."
Mr Barnett said he had also talked with Mr Abbott about potential federal funding for state election promises, including a new rail line to the airport and a light rail project to Perth's northern suburbs.
Mr Barnett confirmed this year's state budget would be delivered in early August.
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