A five-point hike in the GST would be a "win-win" that leaves room for income tax cuts, NSW Treasurer Gladys Berejiklian will tell her state counterparts.
She will spend Friday in Canberra, putting the case for an increase in the broad-based tax from 10 to 15 per cent.
In an opinion piece to be published on Friday, Ms Berejiklian will argue that an increase in the impost, coupled with a compensation package for households earning less than $100,000, would enable the federal government to slash income taxes without cutting further into health funding.
"Our proposal will be a win-win for the states, commonwealth and ultimately the community," she writes.
"It will recoup federal health funding for the state, it will address vertical fiscal imbalance and it will provide a more sustainable revenue stream for the states in the coming years.
"NSW believes that such a co-operative approach to tax reform, involving effort by commonwealth and all state governments, is more likely to yield success in the long run."
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