NSW Premier Mike Baird wants state and federal leaders to consider raising the GST from 10 to 15 per cent, ahead of a leaders retreat this week.
Mr Baird has argued for the rise in an opinion piece for The Australian and a video posted on social media.
He says the federal-state financial system is in “imminent danger of tumbling over a fiscal cliff”.
“At the moment the biggest problem we face is in our health system,” Mr Baird said.
The NSW Premier forecasts that by 2030 federal and state health budgets will be short by $35 billion.
Mr Baird wants the states to be able to use the extra revenue from the proposed GST rise to plug upcoming funding gaps in health.
He says compensation packages could be offered to households earning up to $100,000 to ensure they are not disadvantaged.
“We have a chance to take this nation forward this week,” Mr Baird wrote.
“Let’s set our sights on that, rather than on the usual political point-scoring. This is what the people who elected us deserve.”
Mr Baird explains the plan in a video, posted to his Twitter below.
If our health system is to survive, we need our political leaders to bring solutions to the table. I’ll go first. https://t.co/JiAO5eeFKF
— Mike Baird (@mikebairdMP) July 19, 2015
– with AAP