b'JULY 2020An alternative is amending the GST, which wouldThe Urban Taskforce strongly recommends that the require Commonwealth and state co-operation.state government progress discussions with other Many exemptions could be removed and the rateStates and the Commonwealth to abolish Stamp increased, as has been done in New Zealand. As PaulDuty and replace it with a broad-based tax, which Keating argued in 1984 when referring to Optionwill stimulate housing market transactions and C, this would increase the efficiency and simplicityactivity, and more fairly generate funds for new of the tax system so those effected could be easilyinfrastructure that will enable growth and stimulate compensated, and there would still be funds for newthe economy.UrbanIdeasinfrastructure and recurrent programs.The Bottom line The bottom line is the NSW system of ad-hoc taxes, infrastructure levies, fees and charges is inefficient, complex, highly distortionary, inequitable and variable.Land taxcould provide an alternative and more stable source of revenue for the States. 11'