Tampon Tax 'Anomaly' To Finally Be Axed After Morrison Gives Green Light
The tampon tax is set to be scrapped.
Federal Treasurer Scott Morrison has unveiled plans to remove the 10 percent GST from tampons and sanitary pads.
Morrison said on Saturday that the tax was an “anomaly”, admitting it had led to “frustration and angst” for Australian women.
“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.
“I think it’s an anomaly that has been built into the system for a long time and the states have decided to hold onto the money instead of getting rid of it.”
Morrison reportedly wrote to state treasurers in June to tell them he would make the removal of GST from feminine hygiene products a priority at their next meeting set for September or October.
The move comes after mounting pressure on the Turnbull government to scrap the so-called tampon tax after draft laws passed the Senate earlier this year
That bill was introduced by Greens Senator Janet Rice who introduced a “simple” bill to remove the ten percent GST on sanitary products.
"Huge community pressure has tipped the scales in our favour and the Turnbull government has just announced they support axing the bloody tampon tax!" she tweeted on Saturday morning.
"Now they need to finally get this done once and for all."
The GST on sanitary products has long been a point of controversy, with those against the tax claiming it's a “sexist tax on women’s biology” that should not be applied to an essential item for women.
Labor has pledged to remove the tax should it win the next election, proposing it would make up for any revenue shortfall by introducing the GST to a group of alternative medicines recently excluded from private health insurance rebates.
Opposition Leader Bill Shorten has previously called on the Turnbull government to abolish the tax given Australian women spend about $300 million on sanitary products each year and the tax component is about $30 million a year
All states and territories led by Labor governments support scrapping the tax while Liberal-run NSW, Tasmania and South Australia are opposed.
Minister for Revenue and Financial Services Kelly O'Dwyer said it was not the first time that the government had tried to scrap the tax.
"It's something we have fought for for some time and we are fighting for a today," she told reporters in Melbourne on Saturday.
"We need unanimous agreement to do it. It is something that we believe in and millions of Australian women will benefit."