The federal, state and territory governments have agreed to remove the GST from feminine hygiene products.
The $30 million measure, which will take effect from 1 January 2019, was endorsed at a COAG meeting of treasurers in Melbourne yesterday.
Prime minister Scott Morrison announced the move as the then treasurer in August. It followed several years of advocacy against the tax on feminine hygiene products, going all the way back to the GST's introduction in 2000, against the backdrop of fresh food and other medical products being exempt from the tax.
Removal of the tax required the agreement of the states and territories.
"Common-sense has prevailed and this reform is long overdue," said treasurer Josh Frydenberg.
Mr Frydenberg said the federal government will now consult, with the states and territories, on the definition of feminine hygiene products.