Chemist Warehouse boss tells government to axe GST on rapid antigen tests to cut costs

One of Australia’s leading pharmacy chains has called on the federal government to drop the GST on rapid antigen tests to make them cheaper. Vote in our poll.

One of Australia’s leading pharmacy chains has called on the federal government to drop the GST on rapid antigen tests to make them more affordable.

Chemist Warehouse Director Mario Tascone told 2GB radio on Monday the demand for RATs was “unprecedented”, and likened the demand to panic buying at the start of the Covid-19 pandemic with hand sanitiser, toilet paper and masks.

In referencing Treasurer Josh Frydenberg, he said: “I’d love him to get rid of the GST on this product to make it more affordable”.

Chemist Warehouse’s Mario Tascone.

He said they had stock coming in every day, but dropping the GST would help those struggling to pay for them.

Shoppers have witnessed price gouging all over the country from $20 up to just under $100 for RATs.

“They’ll be 10 per cent cheaper overnight we’ll drop the price, its not much but that $50 pack of five becomes $45 overnight,” he said.

“So that’s one thing they can do immediately, apparently it needs parliament sitting.

“I’m sure they can get on zoom and run an emergency session of parliament because the thought the government is making 10 per cent off millions and millions of packets off sales of rapid antigen tests really doesn't sit right.

“They really need to be as affordable as possible.”

Mr Tascone said customers at Chemist Warehouse were subject to a two pack buying limit, to ensure if was fair for everyone.

“When you’ve got 25 million people who want a rapid antigen test within the space of a week, that's impossible,” he said.

He told listeners there is “no use” calling up their local store to ask for RATs to be put on hold for them.

He said they needed to “rock up” to a store to see if they have them and they can purchase what’s available.

“We welcome the government and state governments to hand it out to as many vulnerable people as we can,” he said.

“I really want the states and federal government to pull some levers here and get rapid antigen tests out there to vulnerable Australians who really can’t afford them and everyone else can buy them without the GST.”

Mr Tascone added Australia’s bulk of its RATs would come from China, who can produce the high amount of RATs needed to scale.

He said the limitations on supply came down to logistics in getting sent here by air, and then driven to warehouses where it can be prepared to be sent back out to chemists.

A woman walks past the sold out sign of test kits at Chemist Warehouse in South Melbourne. Picture: Ian Currie

After national cabinet met last week to redefine the close contact and PCR testing rules, Prime Minister Scott Morrison said Australia would not follow the lead of the UK and make rapid tests free for everyone.

He reiterated his stance on this on Monday when he told viewers on Sunrise: “We already make them free to everyone who is required to have one.

“They are also tax-deductible.

“We are now at this stage of the pandemic we just cannot make everything free because when someone tells you they will make something free, someone will always pay for it, and it is going to be you.”

Mr Morrison said plans are underway to finalise concessional arrangements for pensioners.

“We understand the need for that and we will be doing that 50-50 with the states and territories,” he said.

Federal Health Minister Greg Hunt said there is a strong supply of RATs coming.

He said there will be more than 100 million available over the course of the next two months, more than double the amount onshore during the past two years.

“There is a significant flow into the country,” he said.

“The Omicron disease has changed the balance, so we have less severe cases but more transmissible cases.”

Mr Hunt said the commonwealth was in the process of securing over $370m worth of tests on top of the 10 million tests already in the country.

“The state system is providing the rapid antigen tests, and we’ve covered 100 per cent of the vaccine costs and 50 per cent of those tests costs for about $2.5 billion,” he said.

Some states including NSW and Victoria have secured millions of RATs which will be distributed to their state populations for free.

Mr Frydenberg said RATs were being made available to those in aged care and vulnerable settings.

Work to provide concessional access is being undertaken by national cabinet, which will meet on Wednesday.

“The states have ordered 84 million rapid antigen tests which are on their way. The Commonwealth has ordered further rapid antigen tests,” Mr Frydenberg told the ABC.

“They will be an important defence against the virus, but we have also provided 55 million PCR tests at a cost to the Commonwealth of $2.5 billion to date.

“But we are now moving from the PCR tests to the rapid antigen tests and we are working with the states to meet those costs.”

Opposition Leader Anthony Albanese said the onsequences of people not being able to be tested means that they will be out there in the community spreading the pandemic.

“I don’t know how it is that those lessons haven’t been learnt. But this government, it’s always too little and too late,” he said.