State governments scrapping stamp duty in favour of a broad-based land tax is a key recommendation from an inquiry into housing affordability.

The recommendations from the House of Representatives Standing Committee on Tax and Revenue’s inquiry into housing affordability and supply in Australia, also call for a review of the taxes it says are holding back development of the build-to-rent sector.

The inquiry’s final report blames poor planning processes for a drop in homeownership by Australians aged under 40 to hit the lowest levels since 1947.

It suggests retaining negative gearing as well as allowing Australians to access their superannuation early to use as security for a home loan.

“This recommendation will therefore remove the largest barrier for home buyers, being the deposit,” the report says.

The recommendations also call on the Federal Government to reward the state and local governments that speed up planning processes and for Federal grants to be tied to local and state provision of more housing supply.