Stamp duty should be scrapped, with the loss in state governments' revenue recouped from an increase in the goods and services tax, the Property Council of Australia has proposed.

In its submission to the federal government's tax white paper reform process, the council argues stamp duty is inefficient and nothing more than "a runaway cash grab that's hurting Australia's economy and locking out potential home buyers".

"The community should be outraged that they are being slugged with such excessive charges": Ken Morrison, Property Council of Australia. Credit:Scott Barbour

It has released figures showing the cost of stamp duty to a home buyer with an average-sized mortgage has increased by 795 per cent in Melbourne and 749 per cent in Sydney during the past 20 years.