Anthony Albanese is set to meet with state leaders at national cabinet. (ABC News: Brendan Esposito)
Prime Minister Anthony Albanese has faced more backlash over the GST carve-up after recommitting to a lucrative deal with Western Australia.
The 2018 deal boosted Western Australia's share of the GST, but the Productivity Commission has urged the government to scrap it.
Mr Albanese will meet with state leaders at national cabinet this week, putting him on a collision course with premiers who want change.
Anthony Albanese is facing further pressure from Labor and Liberal states to overhaul the GST carve-up after declaring he was sticking by Western Australia's lucrative funding deal.
The prime minister promised on Monday not to change the 2018 arrangements that boosted the resource-rich state's share of the GST.
This was despite a Productivity Commission report recommending the government scrap the deal, warning it had cost billions more than anticipated and was worsening inequality between states.
Prime Minister Anthony Albanese reiterates there will be no change to Western Australia's GST arrangements after a report recommended scrapping the existing deal.
Mr Albanese is set to meet with state leaders at national cabinet on Wednesday, putting him on a collision course with premiers demanding a GST shake-up.
Victoria's Labor treasurer, Colin Brooks, said the Productivity Commission's interim findings had "backed up exactly what Victoria has been saying for years".
"The current system isn't working. It leaves other states like Victoria exposed and goes against the core purpose of fair distribution," he said.
Queensland's LNP treasurer, David Janetzki, also hit out at the existing funding arrangements, saying his state was looking for a "consistent approach".
"I do have concerns that the inequity of the GST distribution, the consistent cost-shifting from the federal government to the state government, is threatening the integrity of the federation," he said.
Tasmania's Liberal treasurer, Eric Abetz, warned his state faced possible significant reductions in GST revenue unless the 2018 decision was reversed.
"Australia was built on a simple concept: a fair go. This sense of fairness is what underpinned GST when it was first introduced," he said.
