Unfortunately GST hijacked COAG: Shorten

The Federal Opposition has seized on Prime Minister Tony Abbott's promise to review savage funding cuts to schools and hospitals.

The federal government's first budget a year ago ripped out $80 billion of unfunded Labor commitments to the states and territories for health and education.

On Friday, the prime minister headed off a showdown with the state and territory leaders by agreeing to discuss the issue at a mid-winter retreat.

Opposition Leader Bill Shorten praised Mr Abbott's belated acknowledgement the cuts were unfair.

"For nearly 12 months, the prime minister has lied through his teeth... that his government was not cutting funding," Mr Shorten said.

Mr Shorten said it was unfortunate the Council of Australian Governments meeting was overshadowed by debate on the GST.