In its position statement for the upcoming Tax Forum (available here) the AI Group has called for an abolition of inefficient State Government taxes such as stamp duty and a hike in the GST to pay for it. The position statement reproduces this great chart from the Henry Review which is based on modelling by KPMG-Econtech:
The chart shows the additional loss to the economy – e.g. through discouraging transactions such as selling a house that may have occurred in the absence of a tax – due to the raising of one dollar by a particular tax. So, for example, the cost of raising one dollar through stamp duty is one dollar plus the efficiency loss to the economy of around 35 cents. The GST, however, is much more efficient and we would be better off if there were a change in the tax mix.