Australasia's richest literary prize has been axed by the West Australian government.
WA Culture and Arts Minister John Day said he would discontinue the Australia-Asia Literary Award (AALA) following an external review of the award, in tandem with the Premier's Book Award.
The $110,000 Australia-Asia Literary Award was launched by the former Labor government led by Alan Carpenter in 2008.
Mr Day said $80,000 a year would be diverted to the Premier's Book Awards and while the government supported the original intent of the AALA, there was no capacity for it to continue.
"Given the economic pressures, the AALA does not represent the most prudent use of funds and is unsustainable," he said.
"The Premier's Book Awards have a long and proud history and with some additional support can maintain the outward looking vision of the AALA.
"The AALA will be discontinued immediately so we can free up some of those funds for an improved Premier's Book Awards.
"These funds will allow for an increased prize pool, specialist judging expertise and improved promotion, with an emphasis on attracting sponsorships and partnerships."
The Premier's Book Awards would be broadened to allow all Australian writers to enter, widening the award's prestige and bringing them in line with other significant interstate awards, Mr Day said.
The top prize value for the premier's prize combined with the sub-category prize winnings would be $40,000.
Opposition culture and arts spokesman John Hyde said the move would hurt WA's image in Asia and discourage young people training in the arts.
"If you want to advance in the arts you're going to have to move interstate or overseas to get a fulfilling job," Mr Day said.
Expanding the Premier's Book Awards tried to disguise that WA literature and writers are at least $30,000 worse off, he said.