WA senator calls for GST debate

LIBERAL Senator Dean Smith has urged his party to take the plunge and reignite national debate on the prickly issue of GST reform.

Senator Smith says the subject is close to his heart as a West Australian, and he's been calling for change since arriving in the upper house nearly two years ago.

He used a Senate speech on Wednesday to renew that challenge, acknowledging the government had made promises on the issue.

"Yes, I'm mindful of the statements the coalition took to the last election that no changes would be made before the next election," he told the chamber.

"But I'm also conscious of the sensitivities of other states on this important issue. Arriving at a satisfactory outcome will take time, but that time must begin now."

His comments came as Liberal and Labor state leaders fumed over an $80 billion cut to school and hospital funding announced in Tuesday's federal budget.

They've warned they won't cave into accepting a GST hike, but WA Premier Colin Barnett says he's happy to discuss the idea if a greater share of the consumption tax goes to his state.

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