Western Australia's share of the GST pie has been slashed to a record low.

The Commonwealth Grants Commission has allocated 4.2 per cent of GST revenue to the state.

It says WA's share has decreased because its capacity to raise money has risen to a record high, driven directly by mining and indirectly by state taxes.

New South Wales again received the biggest share of GST revenue, reaping more than 31 per cent of the pool.

Victoria received 22 per cent, Queensland received just under 22 per cent and South Australia has been granted 9.2 per cent.

The Northern Territory stands to get just under 6 per cent, Tasmania will get 3.6 per cent and the ACT is set to get 2.1 per cent.

WA Treasurer Mike Nahan says he is disappointed with the decision.

He says the reduction was expected, but with forecasts predicting the state's GST share will fall to just 10 cents in the dollar in coming years, he is worried about the state's economic future.

"That's going to lead to potentially fracturing of the federation," he said.

"When a major state that accounts for 30 per cent of capital investment, and 40 to 60 per cent of exports get essentially no share of one of the nation's largest taxes, that's supposed to help the states, is just a game changer."

States divided over GST threshold on imports

The state and territory treasurers met in Canberra today to discuss a range of issues including GST rates and the sale of government-owned assets.

At the meeting Mr Nahan reiterated WA's stance against lowering the GST threshold for imported goods purchased online.

Several treasurers have argued for change to the GST threshold for online purchases, which currently sits at $1,000.

But Mr Nahan says there is currently no appetite within the state for such a change.

"Western Australia will be reluctant to go into any system that raises GST levies on our population and we get less than 100 per cent back," he said.

"That's our stance. Crank the numbers yes, but right now probably not going to go ahead with it."

Tasmania's incoming Treasurer Peter Gutwein says lowering the threshold could be good for Tasmanian businesses.

"As a principle we would support doing something that was in the best interests of Tasmanian small business," he said.

"But the GST can't be changed unless all the states can agree and I think that's where it's at at the moment."