New South Wales Premier Mike Baird has secured backing from South Australia for a fresh discussion on raising the Goods and Services Tax.

Mr Baird has mounted a social media push for an increase in the rate of the GST, from 10 to 15 per cent, in order to pay for the increasing cost of healthcare.

It comes just two days ahead of the Prime Minister's so-called "leaders retreat" between federal, state and territory counterparts in Sydney.

"The federal-state financial system is in imminent danger of tumbling over a fiscal cliff," Mr Baird wrote in an opinion piece for The Australian this morning.

He said measures could be taken "through the income tax and welfare system" to help struggling families affecting by the tax increase.

The Victorian Labor government was quick to rule out support but South Australian premier Jay Weatherill responded by acknowledging Australia's health system would not be viable into the future without increased revenue.

But he said significant change to GST would be needed before he would contemplate supporting an increase.

"What I've always said is that GST is an unfair tax, it places the highest burden on the lowest income earners if we can find a way of grappling with that I'm open to this discussion."

The Prime Minister has welcomed the "readiness" of New South Wales and South Australia to be constructive.

"Obviously, if there is a problem with revenue it can't just be the Commonwealth's responsibility to solve," Tony Abbott told reporters in Sydney.

He said both leaders had shown the "maturity to rise above short politics and to look at the big issues".

Victorian Premier Daniel Andrews has proposed an alternative revenue raising measure, arguing it would be fairer to boost the Medicare levy.

ACT Chief Minister Andrew Barr said the health funding gap needed to be closed through tax reform but "increasing the GST isn't the only way".

Tasmania's Treasurer Peter Gutwein said he would not rule things in or out ahead of Wednesday's meeting but did not "see the need for any changes to the GST".

Baird accused of caving in to Abbott

The Federal Opposition said the New South Wales Government had "played into" the Prime Minister's hands by supporting a GST increase.

The shadow treasurer Chris Bowen said the states had been forced to find alternative sources of income after the federal government stripped billions from future health and education spending.

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"Now he [Mr Baird] has weakly capitulated to Tony Abbott's plans," Mr Bowen said.

"He is a lion in Macquarie Street, and a mouse in Canberra."

He said he agreed there was a need for tax reform but argued it was a "weak and false argument" to say increasing the GST would help low income households.

"That doesn't mean that automatically it's the GST which must be increased.

"The GST has the biggest impact on low and middle income earners."

Mr Bowen said Labor was prepared to have a fresh debate about the tax.

"We're happy to have that conversation and to support our position that it should not be increased".