Fact check: How can the GST on tampons be scrapped?

Updated

Fifteen years after it was introduced, the issue of what's included in the GST is once again the subject of hot debate.

The claim: Treasurer Joe Hockey and Prime Minister Tony Abbott say they need the agreement of the states and territories to remove the GST from tampons and pads.

Treasurer Joe Hockey and Prime Minister Tony Abbott say they need the agreement of the states and territories to remove the GST from tampons and pads. The verdict: There's no legal barrier to the federal government changing the base or rate of the GST without state and territory permission. While it might be politically difficult, and not something any government would do lightly, claims that it's not possible to change the GST without state agreement are misleading.

Following moves to extend the GST to companies selling digital products like Netflix, what is and isn't included has been up for consideration.

One young woman has started an online petition that calls on the Government to scrap the GST on tampons and other sanitary products. According to the petition, over 95,000 people support the proposal.

But both Treasurer Joe Hockey and Prime Minister Tony Abbott say that changing how the GST is applied is a matter for the states and territories.

The verdict

ABC Fact Check has considered this issue previously, and found that there's no legal barrier to the federal government changing the base or rate of the GST without state and territory permission.

While it might be politically difficult, and not something any government would do lightly, claims from Mr Hockey and Mr Abbott that it's not possible to change the GST without state agreement are misleading.

Sources

Topics: government-and-politics, tax, abbott-tony, hockey-joe, liberals, states-and-territories, australia

First posted