Property Council backs SA tax reform

The Property Council has backed scrapping stamp duties and called for changes to land tax and payroll tax in its submissions to South Australia's tax review.

The council's SA division has urged the state government to consider tax changes in a national context and to take a leadership role in the tax debate.

It says inefficient taxes, like stamp duty, must go and their revenue be replaced with those that are more broadly based, the most obvious of those being an increase in the base and rate of the GST.

"Inefficient taxes act as a handbrake on the economy impeding transactions, stifling activity, inhibiting jobs growth and constricting productivity," the council said in its submission released on Monday.

"Replacing inefficient taxes, such as stamp duty, with more stable and efficient revenue sources, such as broad-based taxes is a crucial step toward improving the economic wealth of the nation."

With land tax, the council advocated the introduction of a lower flat fee on the cost of transferring property titles but argued against a land tax based on a square-metre calculation.

It said payroll tax reporting requirements on employers should be reduced.

It also called for a more specific review into council rates to ensure charges were based on a careful analysis of the services provided and not just an arbitrary revenue-raising exercise.