STATE treasurers this week will consider calls to cut the GST-free threshold for goods bought from overseas online stores, in an attempt to bolster flagging revenues from the tax.

At present, products costing less than $1000 that are privately purchased from overseas are not subject to GST. Domestic retailers have complained that this puts them on an uneven playing field.

State governments, which receive the revenue raised by the GST, also miss out on about $600 million a year due to the threshold, and this forgone revenue is projected to rise as online shopping takes off.

In a meeting of state treasurers on Thursday, New South Wales, Victoria, Queensland and South Australia are expected to make the case for lowering the threshold to bring Australia into line with other countries.

NSW Treasurer Mike Baird, who wants the GST-free threshold lowered to $30, will raise the issue as a ''key consideration'' at the meeting, a spokeswoman for Mr Baird said.