Labor seeks end to tampon tax

Pressure is mounting on the states to agree to removing the GST on women's sanitary products.

Tampon tax protesters (SBS/David Sharaz)

Tampon tax protesters Source: SBS

Labor says a meeting of treasurers next week must back the removal of the GST on women's sanitary products.

Treasurer Joe Hockey will meet with his state and territory counterparts in Alice Springs on August 21 to discuss tax reform.

Opposition Leader Bill Shorten and shadow treasurer Chris Bowen on Friday joined with the Labor treasurers of Victoria, South Australia, Queensland and the ACT in calling for the meeting to resolve the issue of the GST on tampons, pads and related products.

The cost - estimated at $120 million over four years - could be covered by the extra revenue from taxing digital downloads.

"This has always been about fairness when it comes to the taxation of essential items," Mr Shorten and Mr Bowen said in a statement.

"There's no more excuses now for Tony Abbott and Joe Hockey on this issue."

The 2015/16 budget papers show broadening the GST to include digital downloads will raise $350 million over four years from July 1, 2017.

Stop Taxing My Period rallies were held around the country on Friday, and an online petition has so far received more than 101,000 signatures.

Mr Hockey said last month if there was unanimous agreement amongst the states the change would be made.

Meanwhile, the head of the Abbott government's national audit said the states needed to go further and look at raising the rate of the GST.

Tony Shepherd on Friday said increasing the GST with compensation for the vulnerable would be an easier sell to voters than broadening the base.

"I think the states are going to have to bite the bullet on the GST issue," the former Business Council president told Sky News.

Mr Abbott said this week he was prepared to consider "sensible suggestions" from the states, but any change would need to be taken to the people at an election.

The states would also have to come up with savings or tax reductions so the overall burden did not rise.


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