Greens Senator Penny Wright says the inquiry has heard evidence that the testing is damaging student and teacher wellbeing, and has resulted in schools teaching according to the content of the test.
She says the My Schools website facilitates users to compare NAPLAN results, which was never its intention.
Senator Wright says the committee has also found that the design of the test negatively impacts students with a disability or those from non-English speaking backgrounds.
"The way the tests are designed at the moment they don't necessarily show the full ability of any particular student across the curiculum.
"The test focus on literacy and numeracy only and don't test high order thinking skills and certainly there was evidence before the inquiry that students who come from a background where English is not the first language are disadvantaged because of the cultural assumptions that are implicit in the tests."