STATE and territory leaders have failed to reach an agreement on income tax changes following a meeting with the Prime Minister in Canberra.
But they did sign an agreement to receive $2.9 billion in hospital funding to June 2020.
Malcolm Turnbull had advocated for states and territories to levy a percentage of income tax independently, in exchange for the axing of some Commonwealth grants.
But no agreement was reached, with leaders instead moving to consider proposals to share income tax revenue with the states.
Mr Turnbull told reporters in Canberra that more analysis would be done on income tax and the initial proposal was "withdrawn" - just two days after it was unveiled.
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