Federal Labor will spend $700m to build the stalled rail line to Ellenbrook as it sharpens its strategy to win over WA voters and unseat one of the Government’s most senior ministers.

Amid a fierce bidding war between the major parties over who has the best solution to WA’s GST crisis, Opposition Leader Bill Shorten will visit Perth today to announce that Labor will allocate almost half of its $1.6b GST top-up fund to one of the State’s most politically contentious rail links.

After the release on Monday of the Productivity Commission draft report into the GST distribution formula, Mr Shorten accused the Liberal Party of “hiding behind a report on the GST” without taking any action.

Play Video It comes after liberal shut down the state government's gold tax proposal. The West Australian Video It comes after liberal shut down the state government's gold tax proposal.

“While Labor delivers more infrastructure and more jobs for WA, Turnbull and the Liberals are starting fights with other States without offering solutions,” Mr Shorten said.

“Malcolm Turnbull keeps saying he recognises the GST shortfall — but he’s not doing anything to fix it.”

The rail link announcement comes as Labor eyes the marginal north-east electorate of Pearce, held by Social Services Minister Christian Porter, as one of its “must-win” seats at the next Federal election.

Winning the fast-growing suburb of Ellenbrook — which has been waiting for a rail link since it was promised in 2008 — is viewed as critical to securing the seat held by Mr Porter on a 3.6 per cent margin.

The $700m for the Morley-Ellenbrook rail link would be included in a Federal Labor government’s first Budget and would be allocated over two years from 2019-20.

Play Video It will mean two new rail lines in our north and south eastern suburbs The West Australian Video It will mean two new rail lines in our north and south eastern suburbs

Mr Shorten said the project would be undertaken in partnership with the State Government, which has estimated the cost at $863m, and would create “thousands of jobs” in the Perth area.

“While Turnbull loves taking selfies while riding on trains, only Labor will actually invest in our nation’s railway system,” Mr Shorten said. “WA needs its fair share of funding — and that’s what Labor will deliver.”

Labor says its Fair Share for WA fund, announced in August, is the best solution to WA’s GST woes because it would immediately give the State an equivalent amount of funding to a 70¢ in the dollar GST floor.

The Federal Government says it is a bandaid solution and has talked up a system overhaul based on the commission report.