Brisbane charity leads national push on controversial 'tax'
A Brisbane based women’s charity is leading the latest push to end what they call an “archaic rule” which charges goods and services tax (GST) on feminine hygiene products.
Share the Dignity works to help disadvantaged women in Australia have access to feminine hygiene products and assist women affected by domestic violence.
The charity submitted a petition to the Federal Government which to date has over 100,000 signatures to end GST charges on feminine hygiene products.
Share the Dignity founder, Rochelle Courtenay, has asked people supporting the charities push to “axe the tax” to send letters to their local representatives in order to “make noise”.
Ms Courtenay said a lack of female representation during the creation of the GST in the Howard Government is the primary reason for feminine hygiene products attracting GST charges.
The last major petition submitted to end GST charges on feminine hygiene products was led by University student Subeta Vimalarajah in 2015.
Under the Abbott Government, then Treasurer Joe Hockey said he would look into removing GST charges from sanitary products and lobby State Governments to consider the issue.
Ms Courtenay said women do not have a choice when it comes to periods and the charges exist because of the revenue the Government gains.
GST charges on feminine hygiene products may also be contributing to issues already faced by disadvantaged women in Australia.
Brisbane Youth Services provides resources to young people who are disadvantaged or homeless.
A Spokesperson for Brisbane Youth Services said they would support anything which reduces the cost of living for young people who are homeless.
Currently, like all products given a GST charge, the revenue gained from GST listed products and services is handed down from the Federal Government to State and Territory Governments.
Some items exempted from GST include basic food items, education courses, medical health and care services, medical aids and appliances, some medicines, childcare services and religious services.
Feminine hygiene products not falling within this list of medical products has caused much of the activism, as products such as Viagra are included as GST exempt products.
Some economists believe the GST base should be broadened to include male health products, rather than exempting feminine hygiene products.
“While there is an anomaly that some feminine hygiene products are subject to GST and condoms are not, my response would be to include condoms and other male products in the GST net rather than exempt female products,” Former Bank of America Merrill Lynch chief economist Saul Eslake told the Australian Financial Review.
“There are two ways of dealing with it and I think the government has made the inferior choice,” said Mr Eslake in response to Joe Hockey’s attempt to remove GST charges.
Dr Nina Hall is an expert in hygiene development at the University of Queensland.
She said GST charges on feminine hygiene products is likely to be one contributing factor to the gap in menstrual health between rural and urban Australia and the removal of GST charges on feminine hygiene products would absolutely be a positive for indigenous communities.
Dr Hall said Indigenous remote communities differ between communities and differ from urban Australia.
Indigenous communities have a higher rate of hygiene-related infections than the rest of Australia, with 28 per cent of the adult indigenous community living in a dwelling where one or more of the waste or hygiene facilities do not work.
Dr Hall said girls in Indigenous communities have been noted to miss school during menstruation due to products being expensive from price gouging, feelings of shame and lack of amenities such as bins in toilets and locks on public bathroom doors.
“Lack of affordability is one part of the bigger the story,” said Dr Hall.
The Goods and Services Tax Act 1999 states, to maintain the rate and base agreed at the Special Premiers Conference of 1998.
If a change to the GST is to occur, an agreement with the States and Territories would need to be reached.
A 2017 report by the Parliamentary Budget Office said the removal of GST charges on feminine hygiene products would cost State and Territory Governments $115 million over three years.
Ms Courtenay said she has been pushing to meet with every Premier and Chief Minister to gain support on the issue.
Recently, more Federal politicians have also been outspoken about ending the charges.
On March 7 Shadow Minister for Women Tanya Plibersek said during a speech on International Women’s Day to National Press Gallery the GST charge on feminine products was ridiculous.
“In the scope of the whole federal budget and the amount we collect in GST, I think the technical term is bugger all,” said Ms Plibersek.
“The tampon tax was a dumb idea when it came into effect in 1999 and it’s still dumb idea two decades on,” Shadow Minister for Finance Dr Jim Chalmers said.
Dr Chalmers said it was absurd Australia levies GST on tampons, but it’s not applied on male-only products like Viagra and women should not be slugged with extra tax for a necessity.
“A Shorten Labor Government will work with the states and territories to remove the tampon tax, either by getting them to agree to give it up or by finding a replacement source of revenue,” said Dr Chalmers.
“The States and Territories must unanimously agree to remove the GST on sanitary items. The forum for this would usually be at a meeting of the Council on Federal Financial Relations (CFFR),” said Minister for Women Kelly O’Dwyer.
For more on Share the dignity’s petition: https://www.sharethedignity.com.au/axethetax/