Mr Swan said the states needed to broaden their own bases rather than be “expecting somebody else to foot the bill" as demands outstrip revenue in all government budgets.

He again ruled out changes to the $48 billion GST.

Mr Baird’s review of state taxes has urged the federal Treasurer to immediately lower the import threshold for the GST, which would in effect broaden its base, delivering $2.5 billion in revenue in the next three years.

“This argument has got some momentum and rightly so," Mr Baird said. “It’s done around the rest of the world, it’s clear that when the GST was first brought in that the strength and growth of online retailing wasn’t envisaged and it’s really an opportunity to bring it into the modern age and provide a level playing field for our retailers.

“That’s a short-term priority that should be looked at straight away."

The change was also backed in an 18-month review of the GST by former state premiers Nick Greiner and John Brumby .

The states would “aggressively" pursue it and seek a timetable at today’s meeting, as well as income tax sharing and the tax equivalence when states sell or lease assets or businesses.

Advertisement

He said other states could not be treated in the same way as the ACT on property and that jurisdictions were already offering to look at duties and insurance taxes as part of a broader tax debate.

The ACT in June announced a major tax overhaul, phasing out stamp duty on properties in the next two decades by almost ­doubling rates for homeowners.

Mr Swan seized on the move yesterday to say: “The states have both some of the nation’s least and most efficient taxes."

“A prime example of a damaging tax is stamp duty on home sales, which discourages people from relocating for work opportunities and makes it much harder for people to upsize or downsize as their family circumstances change.

“The ACT government is showing what can be achieved with its plan to phase out stamp duty over time. It’s getting rid of this inefficient tax by reforming its own tax base, rather than getting somebody else to foot the bill."

AFR AFR

The ACT’s property tax changes penalise people who have just bought their house, as well as some retirees, who face ongoing increases in their rates. Still, the change removes the volatility associated with stamp duties on purchases, providing a stream of increasing revenue.

Advertisement

Victoria is opposed to changing the GST but Treasurer Kim Wells said the federal government would need to assist in removing stamp duty.

“Wayne Swan has his head in the clouds if he thinks it’s feasible for states to unilaterally abolish stamp duty and replace it with land tax," he said.

“Such a proposal would almost triple land tax in Victoria, including land tax on the family home."

Tasmania supports tax reform and debate over the GST, saying it would have to be in co-operation with the Commonwealth and that it’s unlikely to offer to change property taxes. The state doubled grants this month for first-home buyers to stimulate the ­market.

“Tasmania has always been supportive of long-term tax reform but it needs to be done in co-operation with the federal government," said a spokesman for the Tasmanian government when asked it the state supported property changes in line with the ACT.

In his ACT budget, Treasurer Andrew Barr committed to abandoning real estate stamp duty over 20 years, then he was returned along with Labor at the October election with a smaller majority.

The Henry tax review recommended abolition of stamp duty in favour of a broad-based land tax, yet that does not have Mr Swan’s support.

Stamp duties in the ACT will fall for 97 per cent of properties, increasing for the remaining 3 per cent valued over $1.2 million.

Advertisement

Mr Swan ruled out changes to the GST, despite a call for reducing the import threshold as the first step to broadening its base and for a better look at its efficiency as revenues come under increased pressure because of a slowing economy and increased demands from an ageing population.

“The federal government doesn’t support hitting those who can least afford it to bankroll somebody else’s tax cut," Mr Swan said in his economic note.

“That’s why we’ve so plainly ruled out either raising the rate or broadening the base of a GST."

The Greiner/Brumby review called for broad changes to lift tax revenue, including reducing dependence on inefficient state levies such as royalties and cutting exemptions.

South Australian Treasurer Jack Snelling used a speech late last week to called for a comprehensive review of the GST, including broadening its base, to replace revenue from the abolishment stamp duty which he described as “arbitrary and unfair".

Mr Snelling also said he accepted land tax was “fairer" than stamp duty and that his government would be watching the ACT government’s reforms “with interest".

He said on Sunday he would also express to the meeting that South Australia was “broadly happy “ with the recommendations of the GST review.

The states will attend today’s meeting with a united front to reduce the import threshold, which includes online purchases, as a matter of urgency as they face ­crippling demands on revenues.