The WA Liberal Party is planning to mount a High Court challenge to try to force the Federal Government to give the state billions of extra dollars in GST revenue each year.

The party's state leader, Mike Nahan, said he had legal advice that he could mount the challenge under section 99.51 of the constitution.

He said that section of the constitution banned the Federal Government from giving preference to one state over another.

WA currently receives 34.4 cents for every dollar of GST raised in the state — leaving it with a massive shortfall in revenue.

Dr Nahan said he had been considering launching the court challenge for some time and said it would be crowdfunded.

"We have legal advice and strongly believe that the Grants Commission process is discriminatory in four states, specifically [that it] discriminates against Western Australia and therefore violates certain sections of the constitution," he said.

"The GST has been a long-running issue.

"It needs a long-term resolution rather than the one proposed by [Federal Labor Leader] Bill Shorten of flicking more money to WA on a temporary, one-off basis.

"What we are after is an arrangement whereby we reform the allocation of GST across the states."

On Saturday, Mr Shorten announced a federal Labor government would create a $1.6 billion infrastructure fund to partially offset WA's massive shortfall in GST revenue.

But he gave no commitment to changing the system.

Federal Finance Minister Mathias Cormann later labelled Mr Shorten a copycat, saying his proposal was nothing new and the Turnbull Government had already been making top-up payments.

Review could 'take pressure off': Nahan

Dr Nahan said there was a chance the High Court challenge would not proceed if changes were made to the system as a result of the Productivity Commission's inquiry into the system used to distribute GST revenue to the states. That report is due early next year.

"I hope the Productivity Commission review of the grants process is successful and it finds that it does need reform," he said.

"That would take pressure off us doing the constitutional challenge — but if that is unsuccessful we will pursue ours more vigorously."

The WA Chamber of Commerce and Industry (CCI) said it was vital the State pursue every measure possible to ensure it got its fair share of GST revenue.

CCI chief economist Rick Newnham estimated that by 2020, WA would have lost more than $33 billion due to its shortfall.

"That $33.5 billion is roughly the same as the WA state debt right now," he said.

"So if WA had received its equal per capita shares since the introduction of the GST, WA's state debt would be very close to zero.

"The system is definitely broken, that is why we need a holistic approach to the GST.

"The top-up payments that have been announced on the weekend are certainly welcome … but we need to fix the long-term problem for WA so we don't have to keep going back to Canberra asking for more and more top-ups in future years."