Give states power to boost coffers: MP

The prime minister's parliamentary secretary has floated the idea of quarantining a percentage of income tax revenue to give back to the states.

Another federal Liberal MP - this time Tony Abbott's parliamentary secretary - has added his voice to calls for the states to be given more access to income tax to boost their Treasury coffers.

After government backbencher Peter Hendy suggested the states be given back pre-World War II powers to raise income taxes, Alan Tudge has raised the prospect of quarantining a percentage of commonwealth revenue for the states.

The commonwealth would then reduce some of its payments, Mr Tudge wrote in The Australian on Friday, adding most people believed it was of little relevance which tier of government ran a service, so long as it was efficient.


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