Australia finally ditches the "tampon tax"

Australia finally ditches the

Australia finally ditches the "tampon tax"

Widely known as the "tampon tax", the levy on sanitary products has drawn protests since the GST was introduced in 2000.

"We think this is an unfair tax".

Josh Frydenberg, who succeeded Morrison as Treasurer, said that his colleagues from the states and territories agreeing to the plan was "good news for women across Australia" that was "long overdue".

The Daily Telegraph revealed, just weeks before he became Prime Minister, that Scott Morrison would take a lead role in ending what has been long described a "sexist tax" on tampons and sanitary pads.

After an 18-year campaign, Australia's 10 percent tax on tampons and pads will be removed after states and territories agreed to make sanitary products exempt from GST.

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Prime Minister Scott Morrison finally got on board and committed to scrap the tax back in August, and at last all the pieces have come together to get it done.

Mr Frydenberg said there was "strong agreement" among the states and territories, even though it will collectively cost them $30 million in lost revenue.

"We think it should be scrapped", she said, arguing that, "Millions of Australian women will benefit".

NSW Treasurer Dominic Perrottet told Sky News he will push for an amendment to the proposal to guarantee states a better deal.

"This unfair tax on sanitary products should never have existed in the first place, especially when other items like condoms and Viagra were not taxed".

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Victorian Treasurer Tim Pallas says the plan is about fixing a "political problem" for the coalition in Western Australia, rather than making the distribution of the GST fairer.

In July, the government unveiled a major reform to the GST formula, in which an additional $6.4 billion (A$9 billion) in federal money would be made available over a period of 10 years, in an effort to ensure no state falls below a fixed benchmark.

Mr Wyatt said he understood the position of the other States, but did not believe the "no worse off" guarantee must be delivered through law.

Australia's states and territories stand to lose about A$30m (£16m; $21m) in revenue because of the change.

Under the government's modelling, every state will see increased funding through the GST over the next decade, but it does not account for sudden economic shocks, leaving states concerned they will be short-changed if the economy goes through a downturn or one state goes through a West-Australian style mining boom.

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