The Liberals are proving they're not up to the task of tax reform, again dumping their budget problems on state and territory governments, the Australian Greens have said.
"The Turnbull Government doesn't have the ticker to take on any difficult areas of reform so it's looking for an easy way out," said Greens Leader Richard Di Natale.
"Instead of having the courage to take on unfair tax breaks like negative gearing, capital gains tax and fossil fuel subsidies, the PM is surrendering on real reform.
"Dumping your budget problems on the states and territories is political cowardice. It shows a complete lack of vision for what shared goals might be achieved with a federal tax system that works for the whole country.
"Cost shifting between state and federal governments is one of the biggest problems in the health system and this proposal will make things worse.
"It is a recipe for spiralling health costs and increasing co-payments as federal governments try to shift costs from primary care onto more expensive state funded hospitals."
Greens Treasury spokesperson Adam Bandt MP said:
"Under Malcolm Turnbull's proposal, tax rates would be all over the place like a dog's breakfast.
"These tax changes would make Australia more unequal. Some states may be forced to lift tax rates to stay afloat while others would start a race to the bottom on income tax.
"This proposal threatens governments' ability to raise the revenue they need to fund the services Australians deserve.
"Instead of this distraction masquerading as tax policy, the Treasurer should have the courage to get rid of unfair tax breaks so we can fund our schools and hospitals."