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Padding out the GST

By The Redhead - posted Monday, 11 October 2010


There's nothing in front of me that suggests there is any form of discrimination involved of any kind.

I could probably stomach some of the argument for keeping it on if certain other items also had the GST applied. For instance - herbal medicine, naturopathy, KY jelly, condoms, and the full range of nicotine replacement aids like patches, gum and lozenges.

These come under the GST Act’s “GST-free Health Goods and Services as specified by the Minister Determination”.

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Here’s why I don’t think these items should be GST-free.

Complementary health services and herbal medicines: Unlike registered pharmaceutical drugs, most herbal and complementary medicines are “listed” by the TGA, which means their makers pay a fee and are expected to have evidence to back their claims. Listed products are not reviewed by the TGA but are subject to random audits. There’s even a federal government discussion paper out about this because of the concerns around how these products are handled, regulated and marketed in Australia. Until complementary treatments meet the same level of evidence in efficacy as other medical treatments they should not be GST free. If you choose to make use of those services and products that’s your choice - this discussion is not about how well you personally believe your Chinese herbalist treats your digestion issues. This discussion is about tax.

Condoms and lubricants: Please don’t tell me these are not luxuries! The only people who require these as non-luxury items are sex workers. Of course I think condoms are important and I’m happy to shout from the rooftops about how well they protect against STIs and unwanted pregnancies. But they are not the ONLY way to avoid those things. If nappies for babies (the result of not using a condom perhaps?) have a GST applied then why shouldn’t the condom?

Nicotine patches: Of all the exemptions in this particular list the nicotine patches are the ones that really make me angry.

Smoking is a personal choice and there is no way we taxpayers should be watching the patches and the gum and the lozenges go GST-free because a smoker has decided to quit. Good on that smoker, but why shouldn’t the quitting aids have that tax applied? You can fire all the “incentive” arguments at me you like but while they have a choice to smoke or not, I do not have a choice to menstruate or not. Unless I choose to go condom free (which would ironically be GST-free) and get pregnant, but then I’d be stuck with the GST on the nappies ... such a vicious cycle!

During the recent election campaign the Australian Sex Party suggested that if an exemption cannot be had then at least have the resulting funds quarantined from general revenue and channelled into research and care around ovarian cancer - after all the ovaries and menstruation go together. It’s not the best outcome, but at least it’s something.

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While tampons and pads have new-found fame in popular culture as fun toys for cats or cool stick-on armour you can wear while leaping around the house yelling “schwing schwing” they are not a luxury item. They are a necessary health item and should be listed as such.

So come on Julia - you’re so proud at being the first chick to hold the keys to the lodge, how about you do the one thing every female voter will approve of regardless of their politics and take the GST off tampons and pads. The blokes might even think it’s a good idea too.

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About the Author

While making a main career in the media, The RedHead draws on a bit of life experience from the slightly less glamorous, but extremely fulfilling years mustering cattle and running a bottle shop. All have honed her skills for observing human nature and her sense of humour. She has a teenage son and a husband, and enjoys the satisfaction of the toilet seat always being down. Love Is – never having to ask!

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