NSW at war with WA over GST revenue deal

NSW Treasurer Dominic Perrottet has attacked WA over its share of the GST revenue carve-up.
NSW Treasurer Dominic Perrottet has attacked WA over its share of the GST revenue carve-up.

The NSW treasurer has labelled WA Premier Mark McGowan "the Gollum of Australian politics" in the latest chapter of bitter interstate rivalry over the GST.

Dominic Perrottet launched a stinging attack on the popular WA leader after the state banked a whopping $5.6 billion budget surplus.

"Mark McGowan is the Gollum of Australian politics," Mr Perrottet told Sky News on Friday.

"You can just picture him over there in his cave with his little precious - the GST."

After handing down the state budget, Mr McGowan predicted other state leaders would be "wildly angry" at WA's economic success.

Mr McGowan confirmed on Friday he would not give in on the GST.

"We only get 70 cents in the dollar. It's not as though we're getting a dollar for every dollar we put in. We're still funding the other states to a massive degree," he told reporters in Perth.

"The deal was hard-fought. We won't surrender and we'll do everything to make sure we keep it in place."

Mr Perrottet, who opposed the revamped carve-up arrangements, said NSW and Victoria had predicted the deal would result in major wins for WA.

"What struck me about yesterday's budget in WA is a substantial surplus but no reform there to protect those monies into the future when there is a downturn," he said.

Senior Morrison government cabinet minister Simon Birmingham said the Lord of the Rings reference was an entertaining analogy.

"But can I say to all of the state leaders, state premiers, state treasurers, Labor, Liberal - keep the parochial banter to the footy finals," the finance minister told Sky.

"What isn't going to help the country is constant sledging of one another across state borders, whether it's from Mark McGowan to other premiers or from the New South Wales treasurer to other leaders."

Australian Associated Press