GST change highlights urgent need for tax reform

Liberal Democrats Senator David Leyonhjelm has welcomed today’s agreement between Federal and State treasurers to remove the GST on women’s sanitary products, but says only a total overhaul of the tax system will fix a multitude of discrepancies.

“Since being admitted into this Parliament four years ago I have consistently questioned and challenged the arbitrary nature of the application of the GST, and in no other area has it been more subjective and discriminatory than in the supply of tampons and sanitary pads,” Senator Leyonhjelm said.

“It has been an insult to millions of women across Australia that such essential items are deemed luxuries while other products such as Viagra, condoms and lubricants are considered essential health items and declared GST free.”

The long-running tampon tax debate has highlighted how dysfunctional the current taxation system is, Senator Leyonhjelm said.

“Unlike New Zealand’s comprehensive GST, Australia’s GST is highly discriminatory.

“If we must have a GST, then have it applied to all consumer goods and lift the income tax free threshold to $40,000 and cut personal and company tax rates to a flat 20 per cent to compensate.

“The Liberal Democrats is the only party committed to fewer and lower taxes for all Australians, regardless of gender.”

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