Treasurer’s plan to axe GST on tampons

TREASURER Scott Morrison is axing the GST on tampons, saying it is time this “source of frustration and angst” for women ended.

Mr Morrison said the 10 per cent tax should never have been applied to tampons and sanitary pads in the first place.

The Treasurer said it had not been a “gender-driven policy” but was “an anomaly that has been built into the system for a long time”.

“And the states have decided to hold on to the money, instead of getting rid of it,” Mr Morrison said. “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.”

Mr Morrison wrote to state treasurers in June to tell them he had put the removal of the GST from feminine hygiene products on the agenda for their next meeting, due in September or October.

According to the inter-governmental agreement on the GST, the states and territories must sign off on adding the tax to, or removing it from, any items.

The GST on sanitary products has long been a point of contention.

Critics have said it should not apply to an essential product and does not apply to razors, and that it is a “sexist tax on women’s biology”.

But some conservative leaders have argued its removal would be a “politically correct” error.

State treasurers have so far refused to give up $30 million a year in revenue it generates nationally.

Mr Morrison said this was a “practical”, not ideological, issue. “It’s a fairly straightforward decision to make. As treasurers, I’m hopeful we can get a common sense result.”

It is understood the Treasurer has been speaking with Financial Services and Revenue Minister Kelly O’Dwyer about it since she took over the Women’s Ministry portfolio in December.

“Millions of women will be happy to see this tax on sanitary products gone,” Ms O’Dwyer said. “The states and territories now need to demonstrate some leadership.”