SA premier not keen on tax proposal

It would be a case of "back to the future" if the states were allowed to levy income tax, South Australian Premier Jay Weatherill says.

Prime Minister Malcolm Turnbull has confirmed a proposal to premiers that would have the federal government reduce its income tax by an agreed percentage and allow state governments to levy income tax to an equal amount.

Mr Weatherill says the states handed over such powers in 1942 and he doesn't favour taking them back.

"The idea of the states having their own income taxing powers again and creating some form of double taxation is just not practical and I don't think it would work," the premier said on Wednesday.

Mr Weatherill said he doubted whether the Commonwealth would seriously advance the proposal and couldn't envisage any of the other states taking up the offer.

He said he hoped the tax proposal was not just a distraction from the real business of addressing proper funding for health and education.

"That's what we want to see. A concrete proposal which addresses an obvious need," the premier said.

"This should be the first business of the nation. Making sure we have a first-class public hospital system, a first-class public health system, a first-class public education system."

Mr Weatherill said he still favoured his idea of the states getting a fixed percentage of federal income tax that would provide them with a growing source of revenue.