Its members draw on insights from economists such as Adam Smith, John Stuart Mill, and most significantly Henry George, to explain how policymakers could slash taxes on labour and businesses.

Last month, former treasury secretary Ken Henry warned Australia's tax system had deteriorated so much in the last couple of decades that he was worried about our "social compact" holding together.

To explain what they mean, they say Australia's states and territories could raise an extra $27 billion in tax revenue each year, without reducing investment or economic growth, if they were smarter about land taxation.

They estimate the additional $27 billion that would be raised from best-in-class land taxation and value capture could fund a halving of welfare taper rates with no reduction in maximum payments for recipients.

They say the ACT prices rezoning via its Lease Variation Charge (LVC), which captures 75 per cent of the windfall gains landowners would otherwise receive from permission to redevelop at higher density.

State governments have access to the land base for taxation, they say, but they underuse it and rely heavily on Commonwealth grants funded by less efficient taxes on work and investment instead.

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