If the States were responsible for raising revenue via income tax and GST, they'd have the ability to fundJobKeeper too
History of our tax system.
https://treasury.gov.au/publication/...ias-tax-system
It has been said the states were only too happy to give up their income tax programs and pass the responsibility to federal because raising taxes tends to get the populace upset, reliance on grants from federal provides a good whip with which to lash the feds as well. Win win for state government.