(Image: AAP/Dave Hunt)

Leading economist and prominent Tasmanian Saul Eslake has prepared a paper on tax reform in the Apple Isle at the request of The Australia Institute's Tasmanian branch.

Eslake's paper contains many of the kind of recommendations you'd expect. He notes Tasmania relies heavily on what are regarded as "bad taxes" -- stamp duty, insurance levies -- and less so on "good taxes" that carry less economic burden -- payroll tax (Eslake gets cranky at traditional claims payroll taxes are "taxes on jobs") and land tax.

Like many other economists, he urges a swap between stamp duty and land tax, with transitional provisions to prevent double taxation of those who've recently bought a property. He also wants an expansion in payroll tax by lowering the current threshold, and proposes the return of an estate tax on properties over $1 million (but with deductions available for charitable and not-for-profit donations).