‘Tampon tax’ facing axe in GST carve-up
THE tampon tax is set to be abolished, with the government optimistic the states will agree to the move today.
The government would then act quickly to save women money on essential sanitary items, Treasurer Josh Frydenberg pledged.
"The government understands that this is an important issue," Mr Frydenberg said. "I am optimistic this issue will be resolved, in line with broader community expectation ... we will act quickly to remove the GST from these products."
The Daily Telegraph revealed, just weeks before he became Prime Minister, that Scott Morrison would take a lead role in ending what has been long described a "sexist tax" on tampons and sanitary pads. Mr Morrison said it was time this "source of frustration and angst" for women ended.
The government must secure agreement from all states and territories to scrap the tax because it affects how much GST is collected. It has long been argued that applying the GST to sanitary products was a "sexist tax on women's biology" but state treasurers have in the past refused to give up the $30 million a year it generates nationally.
Labor treasury spokesman Chris Bowen hoped state and territory treasurers did agree to take the tax off tampons.
"This is the reform that is beyond time," he said.
Mr Frydenberg said it was the Coalition's advocacy on this issue that led to it being discussed today.