Labor will back Treasurer Joe Hockey on his mission to convince the states to remove the GST on tampons and other women's sanitary products.
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Shadow Treasurer Chris Bowen told a Labor Party meeting on Tuesday that the party would support the move, if the government had a way of sorting out the change with the states and territories.
Any change to the GST requires agreement across the federation.
At this stage, the government is not able to provide specific detail about how much revenue would be lost if the GST was no longer applied to women's sanitary products.
Labor's comments come after Mr Hockey told the ABC's Q&A program on Monday night that he would raise the issue of GST on sanitary products at the next treasurers' meeting in July.
His remarks were prompted by a question from Sydney student Subeta Vimalarajah, who started an online petition asking Mr Hockey to remove the GST on tampons, in response to the government's tax review. So far, it has gathered more than 93,000 signatures.
Ms Vimalarajah asked Mr Hockey is he thought sanitary products were an "essential health good for half the population".
"I think so, I think so," the Treasurer said.
When pressed on whether the GST should be removed on the items, he said, "it probably should, yes, the answer's yes".
On Tuesday, Prime Minister Tony Abbott said that changes to the GST was an issue for the states.
"My understand is that when the Treasurer was asked about this on Q&A last night, he said it was really a matter for the states," he told reporters.
"My preference is that the states and territories should make up their minds whether they want any changes to the GST and, if they do, then they are welcome to come to us."
On Tuesday, Ms Vimalarajah said she was "surprised, overwhelmed and happy" about Treasurer Hovkey's undertaking.
But the Sydney University arts/law student and women's officer said she wanted to get "as many signatures as possible".
"Anyone who hasn't signed [the petition] yet should jump on."
This is not the first time that Canberra has come under pressure to change the GST on tampons.
Back in 2000, Labor campaigned to have tampons, caravan park fees for long-term residents and funeral expenses excluded from the GST, but was knocked back by the House of Representatives.
Then prime minister John Howard was a staunch defender of keeping the tax on tampons.
"I mean, of course, if you look at tampons in isolation, just as you look at something else in isolation, you can mount an argument to take the tax off it," Mr Howard said in 2000.
"I can mount an argument to take the tax off children's clothes. I could mount an argument to take the tax off old people's clothes. I could mount an argument for a whole lot of things. But we've had that argument, and if you start doing that, you will have no GST in the end, and the whole system will begin to unravel."
Since then other campaigns have also been launched against the GST on sanitary products.
Labor dismissed the idea when in government in 2009, saying it had made a commitment to maintain existing arrangements.
GST-free goods include most basic foods, condoms, lubricants, sunscreen and nicotine chewing gum.
Queensland Deputy Premier Jackie Trad backed the move
"This is the first time you'll hear me agree with Joe Hockey, but of course," she said.
"If Joe Hockey wants to consult with Curtis Pitt the Treasurer about whether or not the GST needs to be lifted off tampons, I am happy to provide some advice to the Treasurer on that. I think it should be lifted."
Mr Pitt welcomed Mr Hockey's offer, but was wary of the details.
"I think what we've seen is a knee-jerk reaction from the Federal Treasurer while under the spotlight of TV cameras," he said.
"If he's genuine, I look forward to seeing some policy detail from his office before the next meeting of Treasurers in July."
With Amy Remeikis
