The tax applied to women’s sanitary products – otherwise known as the tampon tax – will be ditched from January 1.
State and territory treasurers unanimously backed the change during a meeting with federal Treasurer Josh Frydenberg in Melbourne on Wednesday.
It means the 10 per cent GST impost will be gone in less than three months, and women will finally be paying less for tampons and pads from 2019.
A 32-pack of Carefree Procomfort tampons which is currently priced at $7 should cost $6.36 next year – a small saving of $0.64 that will add up over time.
“Millions of Australian women will benefit,” Federal Minister for Women Kelly O’Dwyer told Seven Network earlier on Wednesday while discussing the plan.
But the Federal Government may have a harder time convincing some states and territories to back its plan to change how the GST is carved up.
Treasurers are discussing the planned introduction of a 75 cent floor in GST payments, and the eastern states are concerned they will be worse off.
The plan was hatched to protect Western Australia from its share crashing to the mining boom lows of less than 30 cents in the dollar.