The WA government's second attempt at a gold royalty hike has been officially killed off again in the upper house.

Under the revised scheme, the royalty rate would have increased from 2.5 to 3.75 per cent when the gold price was above $A1400/ounce instead of the previously planned $1200/ounce, which the upper house had rejected.

Nationals leader Mia Davies said the McGowan government's standing in the gold industry had been tarnished by Mr Wyatt's "unrelenting attack on the sector" and lack of consultation. Credit:Shutterstock

When Treasurer Ben Wyatt announced his revamped plan, which aimed to generate $332 million over four years and provide an assistance package for marginal mines, the opposition and crossbenchers immediately said they would not back it.

The upper house officially blocked the proposal late on Tuesday by passing a disallowance motion brought by Pauline Hanson's One Nation MP Robin Scott, who represents the Mining and Pastoral Region.