Treasurers met this morning to discuss the matter and have unanimously agreed to pass the Federal Government's proposal.
The GST on these products has long been described as unfair because products including condoms and Viagra are exempt.
But both major parties recently changed their policies to also exempt sanitary products.
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.
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.
The tax is expected to be removed from these products by January 1, 2019.
