A decade-long campaign to deliver a fair share of the GST to WA has been won with the Morrison Government’s overhaul of the way the tax is shared among the States and Territories passed by the Senate.

The package, which will deliver WA an extra $2.7 billion in GST next decade, went through the Upper House supported by all the coalition, Labor, Greens and One Nation this morning.

With no one opposing the bill it was left to WA Labor Senator Sue Lines, the acting Senate President, to declare the bill passed.

Under the package, a 70 cent floor will be established below which no State or Territory’s GST share can fall. WA’s share fell to an all-time low of less than 30 cents just as the State’s economy headed into domestic recession.

That floor will then be increased to 75 cents by the middle of next decade. Federal taxpayers will pour $5 billion into the GST pool to ensure that no State or Territory is worse off with that commitment locked-in.

Another $1.7 billion will be delivered to WA in top-up payments over the next two years to give the State an effective 70 cents in the dollar floor.

It marks an end to a bruising political debate within the major parties and which should deliver a major boost to the WA Budget.

Finance Minister and WA Senator Mathias Cormann said the Government had come through with a plan because it recognised the existing GST system was unfair to WA.

He said the Government had not only delivered WA an extra $1.4 billion in top-up payments over recent years it had found a solution to a problem most had written off.

“We have provided a national solution to a national challenge. That is what leadership is about,” he said.

While the package went through the Senate, some senators raised concerns about the plan.

Greens treasury spokesman Peter Whish-Wilson quoted from Norman Lindsay’s The Magic Pudding, saying there had been no discussion on how the overall package would be funded.

“That's what we see with the GST debate. The GST has recently become a magic pudding,” he said.

“Well, who would have thought, fixing the problem with the GST, that there's not enough money to go around the States? Who would have thought the fix to the problem is more money?

“The question is: where is the money going to come from?”