The NSW treasurer has spearheaded the setting up of a new body of his state and territory counterparts that will exclude the federal treasurer.
NSW Treasurer Dominic Perrottet on Friday announced the establishment of the Board of Treasurers, which would include state and territory representatives but not federal Treasurer Scott Morrison.
Mr Perrottet said his colleagues threw their support behind the initiative during their visit to Sydney for a meeting of the Council on Federal Financial Relations.
"The states and territories have seized the opportunity to improve our co-operation and make the while nation stronger," he said.
At a function held at NSW parliament on Thursday night, Mr Perrottet made a case to all eight state and territory treasurers for the new body.
It aims to create a cohesive position on what can be done about the GST and the mechanism used to carve up revenue, known as the horizontal fiscal equalisation model.
State and territory leaders are upset Mr Morrison and the federal government brought to parliament a bill for a national housing and homelessness agreement before the deal had state and territory approval.
In a statement on Friday, Mr Morrison said the establishment of the National Housing Finance and Investment Corporation was underway, including the development of an affordable bond aggregator to provide cheaper and longer-term finance to the community housing sector.
The Turnbull government announced it would spend $375.3 million on homelessness.
Mr Morrison glossed over questions from reporters in Sydney on Friday that he had been excluded from the new body.
"I think (the Board of Treasuers) is a useful idea. I am not shy about working closely with the states and territories," he said.
"Dominic Perrottet and I have worked closely for many years and I am pleased that he is going to play a role in ensuring closer co-ordination between states and territories and the commonwealth."
Shadow treasurer Chris Bowen said Mr Morrison was "arrogant" and unwilling to work co-operatively with his colleagues.
"We see treasurer Morrison humiliated by his state counterparts. I can understand the frustration that has led to this," Mr Bowen told reporters on Friday.
