COAG: Leaders fail to reach income tax agreement, sign deal to receive $2.9b boost for hospitals

State and territory leaders have failed to reach an agreement on income tax changes following a meeting with the Prime Minister in Canberra.

Key points:

  • Leaders sign agreement for $2.9 billion in hospital funding until 2020
  • No consensus to support further consideration of states levying income tax
  • Leaders agree to hold domestic violence summit in Brisbane in October

But state and territory leaders did sign an agreement to receive $2.9 billion in hospital funding to June 2020.

Malcolm Turnbull had advocated for states and territories to levy a percentage of income tax independently, in exchange for the axing of some Commonwealth grants.

But no agreement was reached, with leaders instead moving to consider proposals to share income tax revenue with the states.

Mr Turnbull told reporters in Canberra that more analysis will be done on income tax.

"There was not a consensus among the states and territories to support further consideration of the proposal that would enable states to levy income tax on their own behalf," he said.

No additional money will be provided for public schools after the end of 2017 under current arrangements, but further discussions on new funding should be concluded by early next year.

Northern Territory Chief Minister Adam Giles said the debate on income tax "would have been best if [it] came out in a different format, in a different way".

NSW Premier Mike Baird said it was important that tax reform remained on the table.

On health, Mr Baird yesterday argued that $3.4 billion was needed nationally in health funding.

Today he welcomed the Commonwealth contribution, despite it falling $500,000 short of his request.

"We are positive in terms of what has happened with health," he said.

"Longer term, there remain challenges."

Source: ABC News

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