The GST on tampons and other female sanitary products is set to stay and Treasurer Joe Hockey says people have to move on to other issues.
Mr Hockey says he will be taking the proposed removal of the so-called "tampon tax" to the states for discussion at the meeting of federal, state and territory treasurers in Canberra on Friday.
For there to be a change to the GST, all states and territories must agree.
However, it appears NSW is not agreeable and Mr Hockey concedes it will stay.
"Look, it will be done. We have to move on to other issues," he told ABC television.
Removing the GST from tampons and other women's sanitary products would have cost $480 million over the next decade.
NSW Treasurer Gladys Berejiklian will be arguing for the GST rate to be raised from 10 per cent to 15 per cent to meet the growing health funding needs of the states.
"Obviously, whatever comes out of those discussions and out of future discussions between the prime minister and the premiers will feed into our plan for tax reform that we will take to the people at the next election," Mr Hockey said.
It looks likely that states and territories will agree to remove the $1000 GST threshold for foreign goods bought online.
Australian companies, which have to impose the GST on their sales, have long called for this loophole to be closed.
This has been dubbed a parcel pick-up tax, which Mr Hockey said was ridiculous.
"What we want to do is have neutrality that preserves Australian jobs, importantly, gives Australian businesses not an advantage but an equal opportunity to compete with everyone overseas," he said.
Mr Hockey said this was a global trend and Australia was not acting alone.
"Countries all around the world are doing this to make sure that there is no disadvantage to local businesses and local jobs," he said.
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