Major utilities will not be sold: Barnett

Western Australia will not sell off major utilities despite federal calls for more privatisation, Premier Colin Barnett says.

WA has received an extra $499 million from the Abbott government to make up for its declining share in the GST, which will fall to below 30 cents in the dollar from July 1.

While Finance Minister Mathias Cormann said he expected the state to sell more assets in exchange for the one-off payment, Mr Barnett said major utilities would remain in public hands, although parts of them such as power stations or water treatment plants were on the chopping block.

The premier said the sale of government-owned betting agency TAB was going to prove tricky.

"We will have trouble getting the sale of the TAB through parliament, so I and other ministers are spending a lot of time talking with the racing industry," he said.

"This is the opportunity to modernise the industry.

"People don't go to the races because they don't find it attractive any more.

"The industry cannot ignore that issue."

Mr Barnett said if views changed in the racing industry, he suspected other political parties would support the sale.

The premier said he still believed a previously flagged target of $4 billion to $6 billion from asset and land sales was realistic.

Treasurer Mike Nahan said the state's microeconomic reform agenda would be revealed in next week's budget.