Tampon tax worth $480M for next decade

Independent costings of the impact of removing the GST from sanitary products suggests it would cost the budget $75 million in the first two years.

Removing GST from women's sanitary products would cost 480-million-dollars over the next decade. (AAP)

Removing GST from tampons and other women's sanitary products would cost $480 million over the next decade.

Independent costings requested by Labor from the Parliamentary Budget Office show that if the GST was removed from the products in 2017/18, it would cost the budget $75 million in the first two years, and then $50 million a year by 2027/28.

Labor says the states should agree to the new exemptions in exchange for charging GST on digital downloads, which is estimated to raise $350 million between 2017 and 2019.