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Tax reform gives states more control

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The Prime Minister says the overall tax burden won’t increase, as he flags a major overhaul of the income tax system. 

Under the plan, the federal government would reduce the marginal tax rate, but the states would be allowed to make-up the shortfall. 

The move would mean the Commonwealth would no longer prop-up health and education budgets.

Malcolm Turnbull says it’s an important reform that gives the states more control over their destiny.

Dr Helen Hodgson is a taxation expert at the Curtin Law School and says the proposed reform could be a way to keep governments accountable for their spending. 

She spoke with Adam Shand.