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2016-2017-2018
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
TREASURY LAWS AMENDMENT (AXE THE TAMPON TAX) BILL 2018
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Rice)
TREASURY LAWS AMENDMENT (AXE THE TAMPON TAX) BILL 2018
OUTLINE
The Treasury Laws Amendment (Axe the Tampon Tax) Bill 2018 will remove the
Goods and Services Tax (GST) from sanitary products.
This Bill defines sanitary products as tampons, pads, liners, cups, sponges and
other products used in connection with menstruation.
Since A new Tax System (Goods and Services Tax) Act 1999 (the Act) was
introduced, people who menstruate have been paying tax on sanitary products.
This Bill recognises that sanitary products are essential for approximately 50% of
Australia's population to maintain health and hygiene connected with menstruation,
and that application of GST to these products is inconsistent with similar health-
related products which are GST-free.
The current legislation in which GST is applied to sanitary products is effectively a
tax on the biology of people who menstruate. As such, the Treasury Laws
Amendment (Axe the Tampon Tax) Bill 2018 will exempt sanitary products from the
GST.
NOTES ON CLAUSES
Clause 1: Short Title
Clause 1 is a formal provision specifying the short title of the Bill.
Clause 2: Commencement
The Bill's provisions are to commence on the day after it receives the Royal Assent
Clause 3: Schedules
Each Act specified in a Schedule to this Act is amended or repealed as is set out in
the applicable items in the Schedule. Any other item in a Schedule to this Act has
effect according to its terms.
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Schedule 1 -- Amendments
Item 1 - At the end of Subdivision 38-B
Subdivision 38-B of the Act specifies health items and their treatment under the
GST. Item 1 provides that a supply of sanitary products is GST-free.
Item 2 - Section 195-1
Item 2 adds a definition of sanitary products to the Dictionary in Section 195-1 of the
Act, so that sanitary products are defined as tampons, pads, liners, cups, sponges
and other products used in connection with menstruation.
Item 3 - Schedule 3 (item 18, column headed "Medical aids or Appliances")
Item 3 removes the specific exclusion of 'sanitary pads or tampons' from definitions
of products required for continence use, in Schedule 3 (item 18) which lists "Medical
aids or appliances" that are stipulated as GST-free.
Item 4 - Application
Item 4 specifies that the application of the changes to GST on sanitary items would
apply on or after the first 1 January, 1 April, 1 July or 1 October to occur after the
commencement of this item. This item outlines timelines which allow for the required
changes to be implemented by retailers and other stakeholders involved in the
provision and sale of sanitary products.
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
Treasury Laws Amendment (Axe the Tampon Tax) Bill 2018
This Bill is compatible with the human rights and freedoms recognised or declared in
the international instruments listed in section 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011.
Overview of the Bill
The Treasury Laws Amendment (Axe the Tampon Tax) Bill 2018 will remove the
Goods and Services Tax (GST) from sanitary products.
This Bill defines sanitary products as tampons, pads, liners, cups, sponges and other
products used in connection with menstruation.
Since A New Tax System (Goods and Services Tax) Act 1999 was introduced,
people who menstruate have been paying tax on sanitary products. This Bill
recognises that sanitary products are essential for approximately 50% of Australia's
population to maintain health and hygiene connected with the cycle of menstruation.
The current legislation in which GST is applied to sanitary products is a tax on the
biology of people who menstruate. As such, the Treasury Laws Amendment (Axe
the Tampon Tax) Bill 2018 will exempt sanitary products from the GST.
Human rights implications
This Bill seeks to remove barriers financial barriers to access of essential health
items for people who menstruate, and therefore positively engages Article 2 and
Article 12 of the Convention on the Elimination of All Forms of Discrimination against
Women.
This Bill does not engage any of the other applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights
issues. It also seeks to remove barriers to access of essential health items for people
who menstruate and therefore contributes to the realisation of full gender equality.
Senator Janet Rice
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