Raising the GST or introducing a broad-based land tax are two ways the state and federal governments could replace stamp duty revenue and abolish conveyancing duties entirely, the property industry has said, in a push to overhaul property taxation.

Property Council of Australia chief executive Ken Morrison said the federal government's tax discussion paper confirmed stamp duty was one of the worst, most growth-inhibiting taxes and called for government leadership on reform.

"South Australia has already shown its willingness to take on tax reform, including stamp duty. The other states and territories should now step up to the mark. Stamp duty is an inefficient, volatile tax – contrary to all best principles of taxation – and the states should not be relying on such a volatile income stream to fund essential services like health, education, infrastructure and transport."

In ACT the buyer of a $500,000 house will save $4700 if stamp duty is not applied.

"The most obvious solution would be to broaden and increase the GST, but we are open to discussion on a broad-base, low-rate land tax or other revenue options."

Over the next 20 years, stamp duty will be abolished entirely in the ACT and the territory is moving to a broad-based land tax. Tax on insurance is also being phased out over five years.