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Stamp Duty And Payroll Tax Could Be Abolished In NSW

NSW Treasurer Dominic Perrottet reportedly wants to abolish stamp duty and possibly payroll tax to help the state's economy recover from coronavirus.

Perrottet says scrapping inefficient taxes are part of his plan to restart a state economy facing 10 percent unemployment by the end of 2020.

"There is no better time to rid the states of inefficient taxes that hold back economic growth and I am talking stamp duty and payroll taxes," Perrottet told the Sydney Morning Herald on Saturday.

"We are not going to tax our way back into prosperity. Increasing or decreasing taxes is not tax reform."

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The treasurer told the newspaper stamp duty was at the top of his list.

Perrottet says the plan will also focus on productivity, deregulation, digitisation, trade and investment. He wants the economy back on track as soon as possible.

"The longer a business remains closed, the less chance it has of opening up again," he said.

"We want as much of the economy open as possible and the more we practise social distancing, the more chance we have of that."

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The treasurer also foreshadowed a big fall in state budget revenue in 2021, but maintained he would prioritise the economy over NSW's finances.

"I'm more focused on the economy and less focused on the budget," Perrottet said.

"Yes, we need to get back to surplus but we're not going to rush it. The success or failure of how the NSW government deals with the pandemic will not be judged on the size of the surplus or deficit but on how many jobs and businesses we save."