States warming to income tax plan: Barnett

The prime minister's proposal to allow states to raise income tax has more chance of succeeding than previous tax reforms, West Australian Premier Colin Barnett says.

The states have given in-principle backing to consider a new deal on income tax.

State premiers and territory chief ministers are being briefed on the plan at the Council of Australian Governments meeting in Canberra.

Mr Barnett immediately applauded the plan as it would give the states more autonomy.

Queensland Premier Annastacia Palaszczuk is among other leaders who have been critical, saying the plan lacks detail.

On Friday, Mr Barnett said they were warming to the idea.

"A lot of the commentary up until today was fairly negative. Today, I think people are a little bit more open-minded about it," he told ABC radio in Perth.

"People are at least amenable to having a good look at it.

"I think this has got more chance of succeeding than some earlier proposals.

"Certainly the states were a little warmer to it this morning than they were last night."

If the plan were to go ahead, it would not be a quick process, Mr Barnett said.

Under the plan, which has emerged as the federal government moves to fix a looming hospital funding black hole, the Commonwealth will decrease its income tax collection and allow states to collect an estimated two per cent to fund services such as health and education.

To offset its revenue loss, the federal government will reduce grants to the states.

Mr Barnett said two per cent was still being discussed but he didn't believe that was "set in stone".