Tampon prices to fall in Australia with GST to get the axe
THE price of tampons in Australia could fall within months, with state and territory treasurers today unanimously voting to ditch the GST on women’s sanitary products from January 1.
QLD Politics
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THE consumption tax applied to women’s sanitary products will be ditched from January 1.
As flagged by The Courier-Mail today, state and territory treasurers unanimously backed the change during a meeting with federal Treasurer Josh Frydenberg in Melbourne this morning.
This means the 10 per cent GST impost will be gone in less than three months.
“Millions of Australian women will benefit,” Federal Minister for Women Kelly O’Dwyer told Seven Network earlier today while discussing the plan.
In a move flagged by Scott Morrison when he was Treasurer, the tax will be removed from feminine hygiene products after campaigners opposed the impost as sexist because condoms are GST free.
Federal Treasurer Josh Frydenberg yesterday said the tax cut was an “important issue” and called for the states to back it.
“This meeting will give Treasurers an opportunity to have their say and engage constructively on this issue,” he said.
“I am optimistic that this issue will be resolved, in-line with the broader community expectation.
“If agreement is struck, we will act quickly and plan to remove the GST from these products.”
All states had to agree to the change for it to go ahead.
The Federal Government had previously opposed the change but Mr Morrison announced in August that he wanted the tax scrapped.
Queensland Treasurer Jackie Trad backed the change and will not push for any compensation for lost revenue.
“While it’s long overdue, I know that women across Queensland will welcome the cost of living relief on these essential products,” she said.
“I’m incredibly proud to have been able to support this move and acknowledge the work of organisations like Share the Dignity who have been integral in securing this win.”
But Ms Trad and other east coast state Treasurers are set to clash with Mr Frydenberg and WA over plans to legislate a minimum 75 cents return to each state in the carve up of the tax.
Ms Trad accused the Federal Government of “manipulating” the GST to help save seats in WA at the next election, where the low return of the tax is a hot-button political issue.
“All states and the Commonwealth need to have a mature, comprehensive conversation about the future of the GST, how it works and what’s in and what’s out,” she said.
“The GST shouldn’t be manipulated by the Commonwealth for a short-term fix for their political problems.”
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