James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Hansard source

Under the Intergovernmental Agreement on Federal Financial Relations and Commonwealth legislation, a change to the rate or base of the GST would need to be supported by all the states and territories in addition to the passage of relevant legislation by both houses of the Commonwealth parliament. Section 38-47 of the A New Tax System (Goods and Services Tax) Act 1999 relates to other GST-free health goods. Under this section, a supply of goods is GST-free if it is a supply of goods of a kind that the health minister, by determination in writing, declares to be goods the supply of which is GST-free. The health minister may make a determination under section 38-47. However, the states and territories would need to agree unanimously, and the wider policy implications would need to be considered accordingly.

Question agreed to.