The controversial tax on sanitary products will be dumped next year after almost two decades of campaigning.

State and territory Treasurers have agreed to dump the controversial 10 per cent tax on female sanitary products from January 1 as debate over broader GST reform continues in Melbourne.

The move will cost the states $30 million a year, but the Coalition argues the shortfall can be covered by increased GST revenue.

Federal Treasurer Josh Frydenberg tells Ben Fordham they’re not looking to make further exemptions on other products.

“We need to protect the integrity of the system.”

He says another crucial part of the meetings in Melbourne is “ensuring a fair distribution of the GST”.

“This will leave this will leave every state and territory better off.”

The Treasurer tells Ben it will put $351 million into New South Wales.

Click PLAY below to hear the full interview