CPA Australia chief executive Alex Malley has described stamp duty and taxes on property conveyancing as “inefficient and unpopular”, and proposed modifications to the GST to make up any funding shortfall following a new report that found GST reform could improve household incomes and boost Australia’s economic growth.

The CPA Australia-commissioned research from accounting body KPMG looked in detail at four different scenarios for changes to the base and rate of the GST, along with the removal of stamp duties. Discussing the report, Malley said the research makes clear that the fear and misinformation often associated with GST discussions is misplaced, reports Accountants Daily.

“What our report shows is that additional GST revenue can be used to abolish a number of inefficient state taxes and also provide for personal income tax cuts and compensation for low income households, while also boosting economic growth,” Malley said. “It is the packaging of changes to the GST with the removal of other taxes that is critical, and is so often missing when it comes to the GST debate. The additional revenue raised in each of the scenarios can be used to retire or reduce inefficient and unpopular taxes, including stamp duties on insurance, motor vehicles and conveyancing on residential and commercial properties. The modelling reveals that there is also sufficient revenue to return to households as income tax cuts or as compensation for low income households who would not benefit from changes in income taxes,” he said.