State and territory governments hope to make a decision early next year about whether to push forward with plans to collect more GST on online purchases.

Treasurers from the states and territories have discussed the issue with Federal Treasurer Joe Hockey at a meeting in Canberra.

Consumers currently do not pay GST on imported goods worth less than $1,000.

New South Wales Treasurer Mike Baird said a case for lowering the GST threshold for imported goods was being prepared.

"The business case is being released very close to being finalised, key tenants were discussed," he said.

"There is an agreement that we will come together and that the states and Federal Government will work through every line and assumption of that business case.

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"We will ensure that whatever model is considered it is done in the most cost-effective way and at the end of March the treasurers will come back together to make a decision in terms of going forward."

Retail groups say lowering the threshold will help Australian business to compete with overseas shopping websites on price, and net the Government an additional $1 billion in GST revenue each year.

However, doubts remain about whether the cost of collecting the tax will exceed the amount of revenue raised.

At today's meeting, Treasury officials presented a range of options for lowering the threshold.

Queensland Treasurer Tim Nicholls says the states will examine the proposals in more detail.

"It does show in the first year or two that the costs of collection are higher than the revenue generated, but then the trend gets much more positive the longer you go," he said.

"Online retail sales are growing at 15 per cent per annum. It is a growing and significant distribution channel for sales at the moment in terms of the GST system."

He says there is no clear agreement among states about a new level for the GST threshold.

"There were various scenarios put and various models put forward," Mr Nicholls said.

"We need to go into those details."

Labor states reject push for broader GST

South Australian Premier and Treasurer Jay Weatherill says there is much more work to be done to finalise an agreement on the GST changes.

"I think the whole meeting generally took the view that there needs to be improved integrity measures which includes the threshold," he said.

"We are not yet at reaching an in principle agreement about that."

But he and Tasmanian Labor Premier Lara Giddings said they would oppose any attempt to increase the rate of GST, or extended it to a broader range of goods and services.

"The Liberal States want to see change around the GST, the Labor States do not," she said.

"It is because of the fact that the Labor States, SA and Tasmania, the smaller states, are the ones that would be left worse off."

Ms Giddings says any change to the distribution of the GST could leave Tasmania with a budget shortfall of $700 million.

"In a $5 billion budget, that is a huge hit," she said.

"We can not afford for that and what you will end up with is a second class system in Australia where you will have wealthy states and you will have poor states. That is just not part of our federation."

However Mr Nicholls, who serves as Treasurer in Queensland's Liberal National Party Government, rejected suggestions that conservative states are pushing for broader GST changes.

"That wasn't discussed at all," he said.

"There was a broad discussion around GST and what may or may not be part of the tax reform discussion. There was no conservative states pushing it forward and I have been consistent on this."