The states would scrap all stamp duties in exchange for a $20bn a year share of income tax revenue under a radical revamp of fiscal relations put to the Rudd Government's tax review.

The Victorian Government has proposed that the states scrap stamp duty on property, cars and other items in what it acknowledges would be the most significant tax reform since the GST.

It claims the abolition of stamp duties would stimulate investment and generate billions of dollars of additional company tax revenue for the commonwealth to help pay for the change.

The Australian