The federal government should offer financial incentives to state and territory treasurers to help scrap stamp duty, say tax experts, backing calls from the NSW Treasurer to help the state axe the tax.

Since political appetite for broadening the GST base and wholesale tax reform has evaporated, EY chief economist Jo Masters and University of Melbourne professor Miranda Stewart called on the federal government to support NSW’s difficult reform, which is designed to free up housing stock and boost economic activity.