States must agree to increase the rate or expand the base of the 10 per cent goods and services tax to fund cuts to more damaging taxes like property stamp duties and boost the economic recovery from the COVID-19 recession, recommends a report commissioned by the NSW government.

State payroll taxes levied on jobs at different rates and business turnover thresholds should also be harmonised across the nation, says the NSW Federal Financial Relations Review headed by former Telstra chief executive David Thodey.