Agreement on terror but not tax at COAG

Federal and state leaders have failed to reach agreement on tax reform but have pledged to take action on hospital funding in March.

Victorian Premier Daniel Andrews

Victorian Premier Daniel Andrews says national leaders are nowhere near consensus on tax reform. (AAP)

Federal and state leaders have promised a solution to the hospital funding stalemate at their next meeting after failing to reach agreement on tax reform.

Prime Minister Malcolm Turnbull's first Council of Australian Governments meeting ended on Friday with agreements on bold new reforms to tackle terrorism and domestic violence.

But the big question of the day - how to fund health systems the states say are at breaking-point - was put off to the next meeting.

Mr Turnbull insists action will be taken in March - there will either be a new hospital funding scheme or at least an interim one if changes can't be in place by July 1, 2017.

That's when the federal government is set to move to a new funding model for hospitals, based on population growth and the consumer price index, as outlined in its horror 2014/15 budget.

"Our aim is to take action in March," Mr Turnbull told reporters in Sydney after the meeting.

Mr Turnbull acknowledged there was no consensus on a way forward, but making changes to the GST, Medicare levy and income tax remained on the table.

State taxes are also up for debate, as well as the need for the states to find efficiencies in health service delivery, he said.

But the prime minister suggested he was prepared to go it alone on tax reform if no agreement can be reached.

"I believe there is enough goodwill to be able to reach agreement on that, but if there is not then we won't and then we will have to make decisions within our own jurisdictions."

South Australian Premier Jay Weatherill said the present federal/state relationship on health care funding was inadequate and needed to be addressed in March.

"Without this solution we will have to (consider) ... closing actual hospitals - that's the size of the health care funding crisis that needs to be addressed in these discussions," he said.

The premiers agreed on new laws allowing convicted terrorists who complete their jail terms to remain imprisoned if they still pose a risk, and preventative detention before charges are laid.

An ice action strategy and plan to ensure domestic violence orders apply nationally were also agreed.


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Source: AAP



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