Tampon tax: Joe Hockey agrees to lobby states to ditch GST on sanitary items after question from student on Q&A

Updated

Federal Treasurer Joe Hockey has agreed to lobby the states and territories to make sanitary products exempt from the Goods and Services Tax.

University student Subeta Vimalarajah started an online petition earlier this month asking the Government to stop taxing a "bodily function" and remove the tax on pads and tampons.

Research from Deloitte Access Economics estimates the cost to state government GST funding would be a little more than $30 million a year.

"On the other hand, condoms, lubricants, sunscreen and nicotine patches are all tax-free because they are classed as important health goods," the petition says.

"But isn't the reproductive health and hygiene of 10 million Australians important too?"

The campaign has attracted more than 90,000 signatures and during a special post-budget episode of Q&A last night Ms Vimalarajah put her concerns directly to the Treasurer.

"Mr Hockey, do you think that sanitary products are an essential health good for half the population?" she asked.

"Do I think sanitary products are essential? I think so, I think so," the Treasurer replied.

When he was pressed to say whether the GST charge on sanitary products should be removed, he went further.

"It probably should, yes, the answer's yes," Mr Hockey told the audience.

He could probably move an awful lot faster than that so we'll be keeping the pressure up to make sure that women aren't unnecessarily and unfairly being taxed for what is clearly an essential health item. Deputy Greens leader Larissa Waters

The Treasurer said when the GST was negotiated through the Senate by the Howard government, sanitary products were not on the list of exemptions brokered by the Democrats.

Mr Hockey then committed to raise the issue with state treasurers, saying he would need their agreement to grant the exemption.

"Good on you for getting the petition together," Mr Hockey said.

"I'll give you this undertaking: I'll raise it with the states at the next meeting of the treasurers in July."

The issue was raised in the Labor caucus meeting this morning with shadow treasurer Chris Bowen telling MPs he agreed with Mr Hockey and that the Opposition would be supportive if the Government came to an agreement with state treasurers.

"Why did it take till Mr Hockey was asked a question on live TV for him to acknowledge this was an issue?" Mr Bowen said.

"I understand the concerns with taxing sanitary products — concerns that go back to the introduction of the GST by the Coalition.

"These are in effect health products and aren't simply a matter of choice for women."

Queensland Deputy Premier Jackie Trad said her Government would "of course" support moves to remove the GST on pads and tampons.

"This is the first time you'll hear me agree with Joe Hockey," she said.

"I think it should be lifted."

Consumer group Choice said the move was a "no-brainer".

"The original agreement was that the GST would not apply to any essential items," spokeswoman Erin Turner said.

"And if you ask any woman, pads, tampons — these are essential."

If it goes ahead, there are already strong indications the measure would have no trouble passing Parliament, with both Labor and the Greens voicing their support for lifting the GST off sanitary products.

Opposition finance spokesman Tony Burke acknowledged the high level of concern in the community about the issue.

"If there's a pathway to getting this resolved and having the exclusion put in place in a way that can get the agreement of the states, which is the agreement that's required, then I think everyone would view that as a positive step forward," he said.

Deputy Greens leader Larissa Waters called on the Treasurer to move quickly to make sanitary products exempt.

"He could probably move an awful lot faster than that so we'll be keeping the pressure up to make sure that women aren't unnecessarily and unfairly being taxed for what is clearly an essential health item," she said.

'Ridiculous' sanitary products are considered luxury items

Australian Women's Health Network chief executive Kelly Bannister welcomed the Treasurer's undertakings, but added that past campaigns have not made much change.

"I think it's ridiculous that there's a GST on sanitary products and that they're considered a luxury item," she said.

"Look, there's been petitions and protests for many years and unfortunately they haven't had any successful result.

"I've seen the petition that's been going around, I signed it myself, and it has garnered a lot of support.

"It's something that women feel very strongly about understandably, and I think the majority of men would see how silly the situation is as well and would support a change in this area."

When the GST was introduced in 2000, then-prime minister John Howard refused to revisit the tax on tampons, telling the ABC's 7.30 program it was not a women's issue, but one of tax consistency.

"I mean, of course if you look at tampons in isolation — just as you look at something else in isolation — you can mount an argument to take the tax off it," Mr Howard said.

"I could mount an argument to take the tax off children's clothes.

"I could mount an argument to take the tax off old people's clothes, I could mount an argument for a whole lot of things.

"But we've had that argument and if you start doing that, you will have no GST in the end, and the whole system will begin to unravel."

Topics: tax, womens-health, women, australia

First posted