Treasurer Joe Hockey has indicated that changing the GST rate isn't out of the question if that's what the states want.
He has made no apologies for his decision to push funding for schools and hospitals back on to the states.
The states have been hugely disappointed with the decision in Tuesday's budget to cut direct funding, with Queensland, NSW and Victoria saying they will fight the changes.
Mr Hockey says the commonwealth will sit down with the states to work through the details, but says it is the "same taxpayer" funding hospitals and schools.
When asked if it could lead to an increase in the GST rate, Mr Hockey said the government wouldn't move on the 10 per cent rate without taking it to an election.
But if the states wanted more money from the GST, "it's up to them to argue the case to change the GST", he told ABC radio on Wednesday.
Mr Hockey said the commonwealth had always funded those services at base levels, but the Rudd and Gillard governments went on a "spending spree" with no plan to pay for the increases in funding for schools and health.
http://au.news.yahoo.com/a/-/latest/23495529/up-to-states-if-gst-to-change-hockey/
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