Victoria dudded in GST grab: treasurer

Victorian Treasurer Michael O'Brien is heading cap in hand to Canberra to argue the state is being dudded in its share of GST revenue.

Mr O'Brien says he will tell federal Treasurer Joe Hockey the system is unfair when he visits Canberra later on Thursday.

"Victoria is being dudded by the current GST system," he told reporters.

"Victorians are paying over $1.2 billion this year to other states of what is rightfully ours in GST.

"That will get even worse next year.

"That is money that we need here in Victoria for our schools, for our hospitals, for our infrastructure, for our services."

Mr O'Brien said that while Victoria had junked all taxes it agreed to abolish when the GST agreement came into effect, other states had not.

Mr O'Brien said an additional 110,000 people called the state home last year and a fair portion of GST revenue was needed to cater to this growth.

"This is fundamentally an unfair system," he said.

"Victoria is a large state, a growing state, we need our fair share of GST, that's not happening at the moment."