Palaszczuk predicts funding will be live issue at election

QUEENSLAND Premier Annastacia Palaszczuk will push for more health and schools funding from Malcolm Turnbull, after securing $445 million for the state's hospitals.

The funding deal was part of a wider $2.9 billion hospitals funding deal nation-wide, over the three years to 2020, falling short of up to $5 billion some premiers called for earlier this week.

It comes despite Prime Minister Turnbull failing to get enough state support for his plan to share income tax in return for cutting service funding, with only West Australian Premier Colin Barnett backing the idea.

Mr Turnbull said there was "simply not a consensus" on the idea he floated, and that the federal government was "certainly not proposing to increase income tax ourselves".

Despite a strong push from all states for more education funding, Mr Turnbull opposed the proposal, resulting in no further funding announced beyond 2017.

It follows state leaders resoundingly rejecting Mr Turnbull's proposal on Thursday to end federal funding for all public schools, but maintaining Canberra's support for private schools.

Ms Palaszczuk said she welcomed the extra hospitals funding, it "barely restores a quarter of the funding over three years that Tony Abbott cut in 2014".

She said Mr Turnbull had taken "a small step forward", but he had also ensured that health funding would remain a live issue during the coming federal election campaign.

On sustained calls for funding the Gonski school reforms, Mr Turnbull said he was "not wedded" to the proposal, and instead wanted to use "our limited resources" as best possible.

While he guaranteed the federal government would not make further cuts to education funding, state leaders still wanted funding to be increased.

The meeting also confirmed all state and federal leaders would join a national family violence summit in Brisbane in October.

Despite premiers rejecting Mr Turnbull's income tax-sharing proposal, the Prime Minister secured a deal to further investigate new funding models between the states and federal government later this year.

The $2.9 billion deal for hospital funding will also come with a cap on funding increases at 6.6% for the next three years.



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