Labor should tackle the federal budget’s structural deficit and reduce an over-reliance on income taxes by broadening the base and rate of the GST and taxing the unimproved value of land, a leading think tank says.

Urging an end to economic inertia and incrementalism in the management of the budget, the Liberal-aligned Blueprint Institute has used a new report to call for the corporate tax rate to be lowered to 25 per cent and for the abolition of state payroll taxes.