Insurance levies and other stamp duties carry high economic costs that affect Australia’s productivity and innovation, according to a senior Treasury official.

“The taxes with the highest marginal excess burdens are stamp duties on conveyances, company income tax and insurance taxes,” Treasury Revenue Group Tax Analysis GM Roger Brake said in keynote address at the recent Victorian Annual Tax Form.

“Stamp duties are one of the most inefficient taxes levied in Australia.”

These duties are “actually levied at very high rates” when expressed as “a percentage of the economic value associated with a transaction”.

Submissions to the Federal Government’s tax white paper show “widespread support for reform and dissatisfaction with the level of complexity in the tax system”, Mr Brake says.

More than 870 submissions were received, with about 400 from organisations.

About 31% of company submissions were from the financial services and insurance industry, the largest response by sector.

Mr Brake says Victoria’s decision to remove its fire services levy from insurance premiums and instead charge all property owners shows how the tax system can be made more efficient.

The switch has broadened the state’s revenue base and cut its reliance on an inefficient tax that was biased against consumers with insurance.

“Tax reform can improve our economic productivity and participation and lead to a significant boost to living standards. So we need a tax system that is both robust in the face of technological change and which appropriately supports innovation going forward.”

In a submission to the Northern Australia Insurance Premiums Taskforce, the Queensland Chamber of Commerce and Industry says insurance levies are “inefficient and unfair”.

The submission says Queenslanders were unfairly burdened when the State Government raised the stamp duty on insurance in its 2013/14 budget.

“Such taxes serve as a disincentive to be adequately insured,” the chamber says. “Given GST is also charged on insurance, additional duties on insurance are a significant burden for struggling businesses to bear.”