Today the Council on Federal Financial Relations (CFFR) met in Melbourne. The CFFR comprises of the Commonwealth Treasurer as Chair and the State and Territory Treasurers.
The two main points of discussion at the meeting were:
- The removal of the tax on feminine hygiene products; and
- The Commonwealth’s proposed reforms for the GST
There was unanimous agreement by the States and Territories to remove the GST on feminine hygiene products (known colloquially as the “tampon tax”). The removal will take effect from January 1, 2019.
There were also discussions on the distribution of the GST and the Commonwealth’s proposed reforms, following recommendations handed down to the Treasurer by the Productivity Commission.
Treasurer Josh Frydenberg announced that during the next sitting week of Parliament, there will be an introduction of 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
The Treasurer stated that this will guarantee an extra $9 billion in funding over the next 10 years.
Health, schools and remote indigenous housing was also discussed at the meeting.
Read the Treasurer’s full media release here.
(Source: The Treasury)
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