Netflix tax can offset tampon GST cut: ALP

Federal Labor says the digital downloads tax will cover the cost of removing the GST on tampons.

The federal opposition has urged the government to remove the GST on tampons, arguing its proposed Netflix tax will more than make up the gap.

Independent costings conducted for Labor by the Parliamentary Budget Office have revealed the tax on digital downloads would raise an extra $3.2 billion in GST revenue over a decade, Fairfax Media reports on Wednesday.

Labor says removing the GST on women's sanitary items would not burden the states with lost revenue because previous independent costings have shown it would cost $480 million over the coming decade.