Malcolm Turnbull this week outlined a case for allowing the states to raise a portion of income tax for the first time since they were forced to give up income taxing powers during the second world war. Michelle Grattan tells University of Canberra Deputy Vice-Chancellor of Research Frances Shannon that politically the idea is a very hard sell.
Premiers and chief ministers are sceptical of the proposal. Only Western Australia has given strong support. Meanwhile, the tension between Turnbull and Treasurer Scott Morrison remains palpable to their colleagues in government.