The deal has been struck between the states and the Federal Government. Tasmanian health system will receive an extra $54 million in federal funding. The Tasmanian Premier Will Hodgeman welcomed the boost to the state's health budget. It is a very positive step forward. Mr Hodgeman also was pleased that a proposal to allow states to levy income tax has been cancelled. Tasmania is Australia's smallest state and in a poor position to raise it's own taxes. This will help alleviate problems in the health system.