Australia's political leaders have signalled their support for serious tax reform to meet burgeoning health costs - raising the prospect of higher taxes.
Prime Minister Tony Abbott, state premiers and territory chief ministers showed an optimistic and largely united front on the need for tax reform at the conclusion of the Council of Australian Governments (COAG) meeting in Sydney on Thursday.
Any details or commitments to change were scant, however, and Mr Abbott sidestepped when asked if he backed bold statements from his state and territory colleagues that taxes must go up to meet a $35 billion hole forecast for health financing by 2030.
Mr Abbott said the nation had to have a civil conversation and look at all the options in meeting a health budget blowout driven by an ageing population.
"Frankly, if we can have a conversation rather than a scare campaign, our country will be so much better off," he said, after pointing to the fate of the carbon tax as proof of his low-taxing credentials.
South Australian Premier Jay Weatherill said the leaders attending COAG had "levelled with the people of Australia that the services that they want are not able to be funded with the money that we raise".
"We've also been very honest about the fact that involves raising more revenue and inevitably that means looking at increases in taxes, which is not usually the sort of things that politicians like talking about," he said.
ACT Chief Minister Andrew Barr said there was agreement on the problems confronting federation.
"We need to raise more revenue, taxes are going to have to increase," he said.
Asked if he agreed, Mr Abbott said he wanted to focus on efficiency in the system.
The PM said a green paper on federation reform would be produced in the next few months, followed by a white paper in early 2016 to address changes to tax arrangements and revenue responsibilities.
"We've got to look at all the options, but as far as I'm concerned, any changes to any system ... have got to be about making things work better," Mr Abbott said.
There was no consensus on NSW Premier Mike Baird's proposal for an increase in the rate of the GST to 15 per cent, with Queensland Premier Annastacia Palaszczuk reiterating her preference for an increase in the Medicare levy - an option Mr Abbott said was not reform.
The COAG summit also discussed measures to deal with the drug ice, new counter-terrorism measures and a $30 million national campaign to combat domestic violence.
Mr Abbott said tackling domestic violence required action from men in particular.
"Fathers have got to say to sons that it's just not on to raise your hand against a woman," he said after the summit was addressed by anti-violence campaigner Rosie Batty.
"Mates have got to say to mates that it's just not on to raise your hand against a woman, or to tell that appalling sexist joke."
Leaders also flagged new national laws to track unexplained wealth - a tactic targeting drug dealers in the broader war against the drug ice.
And a revised terrorism alert level system was announced along with a national counter-terrorism strategy.
New threat levels - certain, expected, probable, possible and not expected - are due to be in place by the end of the year.
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