Tax plan just a thought bubble

Victorian Labor Premier Daniel Andrews says the government's plan to allow states to raise their own taxes is nothing more than a thought bubble.

Mr Andrews said he discussed this with Prime Minister Malcolm Turnbull on Wednesday morning but learned more about the plan from the newspapers.

"It would be kind to describe this as a thought bubble and I don't want to be overly partisan about this but the PM and his own treasurer don't seem to be on the same page," he told ABC Television.

Mr Turnbull wants the Council of Australian Governments meeting on Friday to back a tax reform plan that would allow states and territories to impose their own levy to fund their hospitals and schools. That would allow the Commonwealth to cut income tax.

Mr Andrews said the federal government proposed to reduce funding to the states.

"Apparently no one pays any more but somehow everybody's got more. That doesn't make any sense to me. This is under-cooked. The hard work has not been done," he said.