How the income tax plan will work

THE PRIME MINISTER SAYS IT'S A ONCE IN A GENERATION REFORM, SO HOW WILL IT WORK?

* Federal government will reduce its income tax collection and allow states to collect the remainder to fund services like health and education.

* That revenue will be offset from federal government grants to the states.

* For now, states will be limited by how much they can raise and workers won't be slugged more than usual.

* But in future, states should be free to lower or raise that amount and be accountable to their voters.