Tampon tax axed but support for GST deal wavering unless assurance is legislated

THE tampon tax has been axed but state treasurers are yet to give unequivocal support for GST reform unless an assurance that they will not be “worse off” is included in law.

THE tampon tax has been axed but state treasurers are yet to give unequivocal support for GST reform unless an assurance that they will not be “worse off” is included in law.

Federal Treasurer Josh Frydenberg met with his state and territory counterparts, including South Australian Treasurer Rob Lucas, at a Council on Federal Financial Relations in Melbourne on Wednesday.

Mr Lucas said unanimous support was given to remove the GST from feminine hygiene products from January 1, 2019.

But his position on the GST deal remained unchanged.

“We will never support any change in the GST deal unless we guarantee that we would be no worse off under the proposed changes,” Mr Lucas said.

State and territories, excluding Western Australia, united to call for an amendment to include the guarantee that no state will lose money under the introduction of a 75 cent floor for WA.

Australian Treasurer Josh Frydenberg and state treasurers at the meeting in Melbourne. Picture: AAP Image/James Ross

However, Mr Lucas said the Federal Government had indicated that it would not include the amendment, despite ongoing public statements they would be “better off”.

“There were some other technical things in the GST proposals which would have had a significant potential impact on SA and we’re pleased the Commonwealth Government showed a willingness to consider those further,” he said.

Western Australian Treasurer Ben Wyatt said it would support the legislation with or without the amendment.

Legislation for the $9 billion overhaul of the GST carve up, that would see SA receive an additional $257 million in “top ups”, is expected to be introduced to Parliament in two weeks.

Prime Minister Scott Morrison, who was on the final day of his WA tour, again said “every state and territory would be better off … South Australia is better off”.

Federal Treasurer Josh Frydenberg reiterated the assurance and said it was based on the Productivity Commission’s projections.

“We are putting in additional money in perpetuity,” he said.

“This is a good result for the states a good result for the integrity of the GST.”

He said removing the GST from feminine hygiene products was “good news” for women across Australia and was “common sense”.

Discussions were also had between the treasurers about education funding and Mr Frydenberg said they will work “as quickly we can to reach an agreement”.

Opposition treasury spokesman Chris Bowen said Labor supports the principle of legislating a floor for WA and that a legislated guarantee will be reflected in their position.

Originally published as Tampon tax axed but support for GST deal wavering unless assurance is legislated