Leading economists widely agree that stamp duty is a bad tax, criticising state reliance on its volatile revenues and its negative impact on housing affordability, while advocating for a transition to a broad-based, annual land tax.

Despite this consensus, no state has made substantial progress towards overhauling the tax – although the ACT is going through a 20-year transition away from stamp duty.

A Wilson-led government would prioritise medium-density housing, such as townhouses and small apartment blocks, rather than high-rise apartments in the suburbs, Wilson said.

“This government has drawn some circles on a map and said, ‘You’re going to live in this circle in a high-rise and that’s it,’” she said. “When I talk to Victorians, I don’t get the sense that they want to all live in apartments. I actually want to provide a choice.”

The Liberals have previously criticised the state government’s reforms to fast-track medium-density housing. Opposition planning spokesman Richard Riordan has called the townhouse code a plan that would cause Melbourne to “resemble Eastern Europe”.

In her speech to the Committee for Economic Development of Australia, Wilson said the size of Victoria’s accumulated net debt, which according to this year’s budget is forecast to reach $194 billion by 2028-29 and require annual interest payments of $10.56 billion to service, had prompted her to write to Premier Jacinta Allan to propose the creation of a new commission to oversee fiscal repair.

“Victoria urgently needs a plan to tackle debt, and I am willing to put aside party-political differences and work with the government to achieve this,” she said in the letter, which was copied to Treasurer Jaclyn Symes and publicly released.

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Wilson said her proposed Victorian Commission for Fiscal Responsibility, which would include former treasurers from both sides of politics, would be given access to Treasury documents, have the power to hold public hearings, and be established with a clear mandate to reduce debt.

Symes rejected Wilson’s proposal, dubbing it “Liberals’ cuts commission”.

“Liberals want the Labor government on board to make their cuts ideology appear less extreme,” she said. “We will not join their frontline cuts squad.”

Wilson vowed to support the Allan government in “all serious attempts” to repair the budget but, in doing so, ruled out any cuts to education, health and other essential services.

“Today, I provide my essential services guarantee,” she said. “There will be no reductions to frontline services under a Liberal government.”

At a press conference after her speech, Wilson would not guarantee the commission’s survival if the Liberals formed government, saying it would be focused on delivering urgent solutions before next year’s budget.

She suggested former premiers Steve Bracks and John Brumby, as well as ex-Liberal treasurers Michael O’Brien and Kim Wells, could be members of the commission – but she said she would have “serious concerns” about former treasurer Tim Pallas joining.

While the budget is forecast to post an operating surplus at the end of this financial year, Victoria’s auditor-general warned on Tuesday that the state was still heavily reliant on debt to fund its massive capital works program.

“Over the last decade, debt growth has consistently outpaced GGS [general government sector] revenue and state economic growth, again a trend expected to continue,” the auditor-general said. “These persistent deficits highlight the state’s reliance on debt to fund its capital infrastructure program.”

One of the biggest transport infrastructure projects funded and built by the Allan government, the Metro Rail Tunnel, will take its first passengers this weekend.

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