The Financial Services Council (FSC) wants stamp duty on life insurance considered during talks on proposed tax reforms.

FSC Director of Policy Andrew Bragg says the Council of Australian Governments (COAG) meetings should focus on removing or reducing taxes that impinge competitiveness.

“COAG should start with the low-hanging fruit by removing state stamp duties on life insurance, which raise just $375 million but cost $85 million to collect,” he said.

“COAG must develop serious proposals for tax reform for Australia to remain a prosperous and competitive country.

“A mandate for structural tax and federation reform should be sought [next year].”

Mr Bragg says Australia’s tax system cannot be recalibrated without federation reform.

“In an era where capital is mobile, our provincial focus and inefficient tax system is costing Australia investment and jobs. The reform malaise has forced the states to rely on a boondoggle of inefficient stamp duties.”