WA Libs' 'fiscal secession' draws gasps

A motion to financially secede Western Australia from the federation drew gasps of disbelief around the nation when it was narrowly passed, but even those proposing it admit it's unlikely to happen.

The original non-binding "WAxit" policy motion called for the setting up of a committee to look into the state becoming completely independent, but was limited to financial matters at the state Liberal party conference on Sunday and passed 89-73.

State president Norman Moore, who previously believed WA should be a separate country, said fiscal independence could be achieved by government decree.

It would involve states raising all personal income tax and company tax, and paying the Commonwealth for the services it provides, Mr Moore said.

But he conceded it was "potentially pie in the sky" as he couldn't imagine any federal government would relinquish some of its power.

After federal Deputy Opposition Leader Tanya Plibersek said it was "a real vote of no confidence" in Prime Minister Malcolm Turnbull, WA Premier Mark McGowan dismissed it as "a lot of bluff and bluster".

But said such talk would continue while WA's GST share remained unfairly low, he said.

"It could all be avoided if Mr Turnbull and the federal government would put in place a better GST share for WA," Mr McGowan told reporters.

"This sort of talk doesn't help."

WA Opposition Leader Mike Nahan was against the motion, but said it was an understandable "expression of frustration".