Labor seeks tax ideas from states

Federal Labor will seek ideas on tax reform from state treasurers and shadow treasurers when they gather for a summit next week.

Shadow treasurer Chris Bowen wants to hear from his counterparts on improving ties between the commonwealth and the states.

The Canberra meeting comes a week after Prime Minister Tony Abbott announced the terms of reference for his federalism white paper.

On the agenda will be issues such as infrastructure, health, tax and federalism.

Mr Bowen said it would be an opportunity to understand the challenges facing the states and territories and forge greater cooperation.

Invitees include the treasurers of South Australia and the ACT, Tom Koutsantonis and Andrew Barr, NSW shadow treasurer Michael Daley, Curtis Pitt from Queensland, Victoria's Tim Pallas, WA's Ben Wyatt and the New Zealand Labour Party finance spokesman, David Parker.

The states have baulked at the Abbott government's $80 billion in cuts to school and hospital funding announced in the May budget.

Many believe it was a strategy to get the states talking about alternative revenue streams, such as broadening the base or raising the rate of the GST or levying their own income tax.