NSW standing in way of tampon tax removal

NSW Treasurer Gladys Berejiklian won't be supporting a move to scrap GST on sanitary products when she meets her counterparts in Canberra.

Tampon Detail of a tampon

Source: Cover

Women who are hoping that sanitary products will be cheaper as a result of a meeting of treasurers are likely to be disappointed.

The gathering in Canberra on Friday of federal Treasurer Joe Hockey and his state and territory counterparts will discuss two GST anomalies that have been in place since the tax was introduced 15 years ago.

But only one - the removal of the $1000 threshold on online purchases from overseas - looks like getting the nod at this stage.

The other - the 10 per cent impost on tampons and other sanitary products - looks to remain in place despite a push by the Labor states to have it scrapped.

Mr Hockey is on the record saying any change needs unanimous agreement among the states.

But NSW Treasurer Gladys Berejiklian, while sympathetic to the sentiment, isn't on board.

"We can't tinker with the GST with one-offs - we need to address these issues holistically," she told AAP before flying to Canberra for a pre-meeting dinner with Mr Hockey on Thursday night.

She will be arguing for the GST rate to be raised to 15 per cent from 10 per cent to meet the growing health funding needs of the states.

Shadow treasurer Chris Bowen, who had quizzed Mr Hockey on the tampon tax during parliamentary question, said it was obvious that the federal treasurer will "squib this issue".

"It's time for the treasurer to show some leadership," he told reporters in Canberra.

"The GST shouldn't have been applied to these products in 2000. It was a mistake and Joe Hockey can fix that mistake now."

Retailers hope the treasurers can agree to scrap the $1000 GST threshold on foreign web purchases that was created prior to the explosion in online shopping.

Australian Retailers Association boss Russell Zimmerman said the issue was about levelling the playing field for Australian-based businesses.

"Extension of GST to international online purchases is crucial to the survival and growth of Australian retailers and the retail industry as a whole," he said.

Mr Hockey is using the meeting to update the states on the findings from his broad tax review and garner some consensus to progress with much-needed national reform.

He said all governments must work together to improve the economic climate for business and ensure more efficient delivery of services, while keeping taxes as low as possible.

"We believe that Australia's personal and corporate income tax rates are too high and that we need to reduce the burden of tax on hardworking Australians," he said in a statement.


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Source: AAP


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