One way it could work is that you have a tax ladder. Tax from lower rungs goes to States, and tax from higher rungs goes to the Commonwealth. It would need adjustment over time as well.
I don't really favour it simply because at the moment, Land Tax is where I think the game is at.
Can't hide it, is in fixed supply, low or no 'deadweight' losses, captures the value of public improvements, promotes density etc.
And almost all states and territories have land tax already, it would be a case of the states amending their own laws to broaden it.