The Federal and State governments should help fund a memorial park in honour of the 202 victims of the 2002 Bali bombings, according to Premier Colin Barnett.

The Bali Peace Park Foundation is struggling to raise funds to build a park and memorial on the site where the Sari Club had been.

The site's owner, nightclub boss Kadek Wiranatha plans to build a new nightclub and restaurant complex on the land.

Bali Peace Park Foundation member Phil Britten said the group was struggling to raise funds to build the park because it had not been given tax-free charitable status by the Federal Government.

Mr Barnett said the State Government was prepared to donate money to the cause and honour the 88 Australians who died in the terrorist attacks.

"...I think there should be some permanent memorial, a park is a good concept," Mr Barnett said. "That is something that is primarily for the federal government, but the states, including Western Australia, should be supportive of that.

"In principle I would hope the Commonwealth and all Australian states would contribute..."

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