GST population grants get Vic backing

Handing out GST based on state populations is one of the few federal tax ideas that has Victorian Treasurer Tim Pallas excited.

Victoria gets about 89 cents back for every $1 it contributes in GST, while some states get more.

"I'd be very excited by that prospect ... We've subsidised the federation from day one," Mr Pallas said on Wednesday.

Shadow Treasurer Michael O'Brien said a population carve-up of the GST would have an "absolute unity ticket" with the opposition.

He said it was up to the federal government to provide equalisation measures for smaller states.

"It's a bit rich to expect states like Victoria to continually pick up the slack for the federal government," he said.

"We are the only state in the country that's been a constant donor to every state since federation."