Shops across NSW would be allowed to trade on Boxing Day under a Baird government plan.
Treasurer Andrew Constance says under the state's current "archaic" laws, shops in Sydney's CBD and eastern suburbs can stay open during the public holiday while those in western Sydney and other areas can't.
"For too long businesses have been at a disadvantage in NSW as a result of this restriction on Boxing Day," he told reporters in Sydney's west.
Mr Constance said the coalition was seeking a mandate at the March 28 election for the plan after a similar idea was stalled in the state's upper house in 2012.
He said under the proposal Boxing Day would remain a public holiday and employees would have the "choice" to work.
The treasurer urged Labor to support the plan, while calling them "nothing more than the puppets of the union movement".
He said the change would allow NSW retailers to compete with other states, such as Victoria, which has removed restrictions on Boxing Day.
Good Friday, Easter Sunday, Anzac Day (until 1pm) and Christmas Day would remain restricted trading days under the Baird government.
The Shopping Centre Council of Australia commended the plan as good news for consumers, jobs and the economy.
Opposition Leader Luke Foley said while he supported the easing of trading laws over recent years, he believed it was important for workers to be with their families during the Christmas break.
"I don't want workers pressured into giving up their Christmas Day to stock stores for Boxing Day sales," he told reporters.
"I believe some things are sacred, I believe Christmas is sacred and if workers can spend some time with their families, I want to support them in that."
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