A lack of “political courage” in Canberra is hampering ambitious tax reform and NSW Premier Dominic Perrottet wants the states and territories to be given the choice to take control of more parts of their economies.

In a National Press Club address on Wednesday, Mr Perrottet pointed to childcare and health as two sectors he wants NSW to have more autonomy over, to end the “confusing” overlap of funding and maintenance between states and the federal government.