Tax changes will be on the menu when the prime minister hosts state and territory leaders to dinner in Canberra on Thursday night.
Malcolm Turnbull will be trying to convince them to support his planned income tax changes.
Leaders are asking for more information on the proposal to allow states and territories to charge their own taxes to fund schools and hospitals.
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Federal Health Minister Sussan Ley argues the time has come for states to be accountable for the way they use tax money to run their health systems.
But the states are demanding more detail with Victorian Treasurer Tim Pallas describing the prime minister’s proposal as a “contemptuous thought bubble”.
However Ms Ley said the plan was about handing responsibility back to the states and territories and making them accountable to their taxpayers for the demands they put on their governments.
Mr Turnbull argues the change would end the blame game between the states and Canberra.