Federal Treasurer Jim Chalmers has been urged by his state and territory counterparts to make the GST 'no-worse-off guarantee' a permanent arrangement, as he completes the finishing touches on his Mid-Year Economic and Fiscal Outlook (MYEFO) update.

Key points:

· Federal Treasurer Jim Chalmers met with his state and territory counterparts in Brisbane today

· Treasurers are calling on the Commonwealth to make GST arrangements permanent

· States and territories are warning they'll face a significant decrease in ongoing revenue

The guarantee was struck under the former Coalition government in 2018 and requires the Commonwealth to compensate states for shortfalls in their GST revenue share — giving all jurisdictions a minimum 70 per cent share.

The guarantee was never legislated and expires in 2027-28.

Jim Chalmers met with state and territory treasurers in Brisbane today, who warned they'd collectively be almost $5 billion worse off per year if the guarantee isn't made permanent.

Mr Chalmers said it was a "constructive" and "productive" conversation but said the meeting did not come to a final conclusion.

"This is obviously a live discussion. It needs to be one that recognises not just the pressure on some state budgets, but the pressure on the Commonwealth budget as well," Mr Chalmers said.

In a statement, the treasurer said the cost to the arrangement had "substantially increased" since the deal was struck in 2018, and an extension would result in significant fiscal implications for the Commonwealth.

The Board of Treasurers released a communique warning that without the guarantee, the Commonwealth would be responsible if jurisdictions are "forced to consider a new tax or levy to ensure essential services are not compromised or reduced".

"Without permanently honouring the No-Worse-Off Guarantee, the Commonwealth will leave most states and territories with a significant decrease in ongoing revenue," the communique outlined.

Queensland Premier Annastacia Palaszczuk said there is up to a billion dollars a year at stake for the Queensland government.(AAP: Jono Searle)

The NSW government's first budget in September included planning for the guarantee to be made permanent.

NSW Premier Chris Minns has flagged that he will ask the government to reconsider its arrangements at the national cabinet meeting next week.

The Queensland Premier Annastacia Palaszczuk said there is up to a billion dollars a year at stake for the Queensland government.

"What we don't want to see is any decline in the GST that Queensland gets… at national cabinet, I'll be fighting for our fair share of GST," Premier Palaszczuk said.