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Women campaigning for the end of the tax in 2015
Australia will remove a controversial tax on feminine hygiene products following years of campaigning by women's groups.
Currently, tampons and sanitary napkins are sold with a Goods and Services Tax (GST) of 10% because they are classified as non-essential items.
Women argued that it was an unfair classification, noting that items such as condoms and sunscreens were exempt.
The federal and state governments agreed Wednesday to remove the tax.
"We are very pleased that everyone is joining us to eliminate this unfair tax," said Minister Delegate for Women Kelly O 'Dwyer at Sky News Australia.
"Millions of women across the country will be very grateful."
Widely known as the "tax on tampons", the tax on health products has provoked protests since the introduction of the GST in 2000.
Many women, including longtime activists, celebrated the change on Wednesday.
The decision was made by the federal government, which had already faced opposition from its counterparts in the states and territories over the estimated drop in tax revenues.
In 2015, a petition against the tax was signed by more than 90,000 people. The activists even produced a rap video.
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Due to the change, Australian states and territories are likely to lose about A $ 30 million (£ 16 million).
Prime Minister Scott Morrison has already stated that sanitary products should not have been included when introducing the GST.
In July, India had abolished its 12% tax on sanitary products as a result of similar campaigns. The United Kingdom maintains a 5% tax, although activists have called for its withdrawal.
