Prime Minister Malcolm Turnbull has failed to commit to a new deal for a better GST share for Western Australia, but told the party faithful only the Liberals can enable entrepreneurship and enterprise in the state.
A year after he received an enthusiastic standing ovation at the Liberal state conference in Perth by promising to protect WA's revenue by introducing a GST 'floor', the applause at this year's event was more restrained.
Since then he backed away from the deal while standing next to then Premier Colin Barnett in the middle of the Liberals' disastrous state election campaign.
WA currently gets back just 34 cents for every dollar of GST it raises, far less than any other state under the commonwealth "fiscal equalisation system".
"Over the next few years, the GST sharing scheme, or system, will rebalance," Mr Turnbull said at the state conference.
"Once that happens, we will be able to consider a percentage floor below which no state or territory's share can fall. In the meantime, the Productivity Commission is analysing the way the GST formula operates."
The issue is causing tension between the federal and WA Liberals, with the latter considering a High Court challenge over the GST carve-up.
Polls have shown the GST issue could contribute to the loss of five federal Liberal seats in WA at the next election, enough to lose government.
Mr Turnbull said he shared WA residents' entrepreneurial values, which the east coast press criticised him for but "on this side of the continent those are all compliments".
In a bid to win over the disgruntled state, the prime minister on Saturday announced new tax incentives for exploration by junior miners.
The $100 million Junior Mineral Exploration Tax Credit scheme aims to make it easier to raise money by allowing tax losses made by junior explorers to be distributed as a tax credit to shareholders.
"The cause we stand for, the cause for which we find, the cause of freedom and enterprise, the values that have made Western Australia strong have made Australia great and have built our nation, built this first world economy with a generous social welfare safety net," he said.
"They are challenged now, more than ever by the most left-wing leader and the most left-wing Labor Party we have seen in generations."
There had been some expectations the he would commit to a better deal after Opposition Leader Bill Shorten's pledge last weekend to create a $1.6 billion infrastructure fund to partially offset WA's GST shortfall.
Mr Turnbull spruiked his government's achievements in WA, including this week's announcement that the Kalgoorlie region will become the third site to trial controversial cashless welfare cards.
AAP GR/ET