Tax ideas coming thick and fast

Road-user charges, the end of stamp duties and lower taxes for all business are among a flurry of demands Joe Hockey has to sift through in response to his tax discussion paper.

The Australian Industry Group, in its submission, warned the treasurer the tax system is under strain and needs a shake-up.

"We need a commitment from across the national parliament and the federation to a bold remodelling of our approach to taxation," the group's chief executive Innes Willox says.

It wants the company tax rate reduced to more competitive levels and the thresholds for the two higher personal income tax rates increased.

It also says "harmful" state and territory payroll and insurance taxes should be removed while the GST is increased and its base broadened.

The Property Council of Australia urges an end to mortgage stamp duties, calculating their cost has rocketed by a staggering 800 per cent in the past two decades.

Chief executive Ken Morrison says stamp duty is out of control and a runaway cash grab that throws up a major barrier to home ownership.

"These astounding increases ... are nothing short of scandalous," he says.

Getting rid of stamp duty needs to be a top priority of national tax reform and for every government in the country.

An increased and broadened GST was the "most logical option" replacement.

The Australian Automobile Association estimates that an equally eye-watering $32 billion is raised each year from various motoring and transport-related taxes and charges.

These include registration and licence fees, stamp duty, road tolls, GST on fuel and vehicle sales among others.

But the biggest impost is fuel excise at $15 billion a year.

The association's chief Michael Bradley says only 47 per cent of fuel excise revenue is returned to road building.

He believes fuel excise should be phased out and replaced with a road-user charge which would provide a clear link to the revenue raised and investment in infrastructure.