3 October 2018
Media Release - #2018021, 2018

Council on Federal Financial Relations meeting

Today the Council on Federal Financial Relations (CFFR) met in Melbourne.

Significantly, there was unanimous agreement to remove the GST on feminine hygiene products, after the Commonwealth placed this important issue on the agenda.

Common-sense has prevailed and this reform is long overdue. The GST will be removed on feminine hygiene products from January 1 next year.

There were also discussions on the distribution of the GST and the Commonwealth’s proposed reforms, following the recommendations handed down by the Productivity Commission.

In the next sitting week of Parliament we will introduce legislation that will: 

  • Establish a more stable and predictable equalisation standard, based on the fiscal capacity of the stronger of New South Wales or Victoria;
  • Introduce a GST relativity floor, initially set at 70 cents and ratcheting up to 75 cents in 2024-25; and
  • Permanently boost the GST pool with direct Commonwealth cash injections.

Our reforms will deliver a fairer and more sustainable GST deal for everyone and, based on the Productivity Commission’s data, will make every state and territory better off. 

This will guarantee an extra $9 billion in funding over the next 10 years – this means more money for schools, hospitals, roads and police.

We also had productive discussions on health, schools and remote indigenous housing.

I thank my State and Territory counterparts for their constructive contributions, and look forward to continuing to work together to strengthen Australia’s growing economy.