The West Australian premier is prepared to lower even further what he would accept as a minimum share of GST to ensure something gets done.
Colin Barnett suggested on Tuesday he would agree to a 65 cent “floor” if that was the figure proposed by Prime Minister Malcolm Turnbull.
It comes just three weeks after he said he would accept 70 cents in the dollar, up from a record low of 30 cents presently.
Mr Turnbull told the Liberal state conference in August a floor would be set below which no state or territory’s share of the tax could fall.
“I accept Malcolm Turnbull’s argument that you need to do it when no one’s going to be directly worse off,” Mr Barnett told Sky News.
“If that’s the case, pick a lower figure – 65 cents rather than 75 cents in the dollar.
We will reach that in my view and at least we would know where we’re going.”
Otherwise, Mr Barnett said, Australia’s economic development would be held back.
“If you don’t give the export state and big investment state a reasonable chance of success, then Western Australia will struggle.”
WA’s share is forecast to hit 60 cents in 2019/20.
The premier argues his state would not have a debt problem if it was treated the same as every other state, and would likely be boasting a $1 billion surplus.