The 10 per cent tax on tampons and pads will be removed after states and territories agreed to make sanitary products exempt from the GST.
Treasurers met this morning to discuss the matter and have unanimously agreed to pass the Federal Government’s proposal.
The products to be made exempt are expected to include tampons, pads, menstrual cups, maternity pads and leak-proof underwear, but the full list will be subject to public consultation, reports ABC news.
The move will cost the states $30 million a year but the Coalition argues the shortfall will be easily covered because they are already receiving more GST revenue than forecast.
Earlier this year Scott Morrison, then treasurer, vowed to remove the tax and described it as an “anomaly” that should never have been applied to sanitary products in the first place.
“I can see it is a source of frustration and angst. Here’s a straightforward practical opportunity to deal with it once and for all,” he said at the time.
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