A new proposal by The Greens would see stamp duty tax scrapped and replaced by an annual land tax.
The tax would cost around $1 per $1000 of the property value and would eventually be cost neutral to the states.
In the short term, federal loans would cover the losses from ending the hefty lump sum stamp duty.
The Treasurer's office said no such proposal was on the table, however housing affordability policies will be front and centre when state and territory treasurers gather in Canberra on Friday.
According to Brendan Coates from the Grattan Institute, stamp duty is Australia's "least efficient tax".
"It has a really big cost on the economy," he said.
"It stops people from moving essentially when they want to look for a new job or they want to upsize their house when they have a family."
Opposition spokesperson Andrew Leigh said Labor's priority was to "tackle the number one issue that the federal government can play a role in", referencing negative gearing and the capital gains tax discount.