Labor opposition leader Eric Ripper of Western Australia condemned the Federation on its move to tax the mining industry - which contributed to the recovery from the global financial crisis.

Mr. Ripper told media on Thursday that WA was already "ripped off" from subsidizing the rest of the federation through its resource sector and the mining tax is adding more wounds.

"'There's no doubt that Western Australia is ripped off in a way in which commonwealth-state financial relations operate," Mr Ripper said.

Mr. Ripper added that Western Australia already subsidizes the rest of the federation and there's a possibility that an increase for more subsidy from Western Australia will be expected.

"I would caution any government about extra taxation on the mining industry, including the state government, because in the end you can choke off the prospect of new projects," he warned.

Mr. Ripper's statement today also coincides with the Henry Tax Law by the State Government.

The Henry Tax is pending under review by Treasury Secretary Ken Henry. The review is scheduled to deliver three days from now, when financial markets close down.

The State is expected to release a response on the same day.

Prime Minister Kevin Rudd earlier said today that the Henry Tax will provide new opportunities for prosperity from Australian families and small firms.