Liberal West Australian Premier Colin Barnett is at odds with Federal Liberal Leader Tony Abbott over the flood levy.

Yesterday Prime Minister Julia Gillard announced the Government would impose a levy of 0.5 per cent on middle income earners and a levy of 1 per cent for those with taxable incomes above $100,000.

Ms Gillard says the Government will also delay or cut infrastructure projects to pay for rebuilding efforts in Queensland and other states hit by damaging floods this summer.

Mr Abbott is strongly opposed to the measure, but Mr Barnett says he supports a temporary levy.

"I believe most Australians, most West Australians, are willing to contribute a little bit more to help Queensland get back on its feet. So I think that is appropriate," he said.

Mr Barnett believes most Australians will not have a problem with the temporary measure.

"If it does mean some other infrastructure projects around Australia are delayed or put back for 12 months, I think we can live with that in the interest of helping out Queenslanders," he said.

Mr Barnett says he expects to have discussions with the Federal Government about what projects they are considering cutting back or delaying.

He says some WA transport projects, especially the interchange and roads around Perth airport, would be one option as they could be delayed for a year or two without much of an impact.

But the sinking of the rail line in the Perth CBD and the Oakajee port and rail network would go ahead, he said.

Despite recent floods in Carnarvon and WA's Gascoyne region, no revenue raised through the federal levy will be directed to the area.

Mr Barnett says he has no objection to that, as work on repairs is already underway and assistance from the State Government will be sufficient.

The Federal Government expects to raise $1.8 billion from the levy, while another $1 billion will be found through delaying infrastructure projects.

- ABC/AAP