The states are demanding a new GST deal that would cost the Commonwealth another $5 billion a year, further straining Anthony Albanese’s claim that he would be better at wrangling the premiers than his predecessor Scott Morrison.

Already facing a multibillion-dollar battle with the states next week over the NDIS, and under assault from Queensland and NSW for cutting 50 road and rail infrastructure projects, the federal government now faces a demand to make permanent a temporary top-up to GST payments that is due to expire in 2027.