Council of Australian Governments and Mr Turnbull

states: If they need more money for services the states would have to raise the rate, rather than Canberra find the cash, according to Nine News Australia. But the Council of Australian Governments meeting ended with Mr Turnbull ditching the plan in favour of an interim hospital deal and the states looking at taking a slice of the income tax pool. The prime minister wanted the state and territory leaders to sign on to a deal in which they would get control of a portion of income tax, but lose an equivalent amount in federal government grants. For every dollar taken, the states would still lose a dollar in federal grants, making them think more carefully about how they spend the money. Mr Turnbull and Treasurer Scott Morrison now have a month to come up with an alternative tax plan before the federal budget is delivered. There were no promises on schools funding beyond a commitment to conclude talks in early 2017. (news.financializer.com). As reported in the news.