GST food guide

About this guide

Terms we use

When we say:

• GST credits, we are referring to the GST term, input tax credits
• GST law, we are referring to the GST Act 1999
• sale or sell, we are referring to the GST term supply.

We have developed this guide with the Australian Food and Grocery Council and other major food industry representatives.

This guide will:

• help you to work out whether food you sell is taxable or GST-free
• address the food retailing sector’s main GST issues
• help you to work out food and non-food items.

This guide has three sections:

01 Simple rules – in this section you can:

• use the simple rules to work out the GST status of food items you sell
• learn when GST is applied to food items in the supply chain.

If you can’t work out the GST status of a food item in section 1, go to section 2.

02 Food industry issues – in this section you can find out:

• the GST status of food items you sell
• the meaning of GST terms
• where to find more information.

03 GST food classification flow chart – in this section you can work out if your food or beverage item is GST-free or taxable.

	For a list of the GST status of more than 500 food items, refer to the Detailed food list on our website.
	If you still can't classify your food item: phone us on 13 28 66 refer to the Food Industry Partnership section of our website at www.ato.gov.au/foodindustry

1. Simple rules

These rules help you work out the GST status of most food items you sell.

If you use the simple rules and are still not sure whether a food item is taxable or GST-free, go to section 2.

GST-free and taxable food items

GST-free food

The following foods are GST-free:

• bread and bread rolls without a sweet coating (such as icing) or filling – a glaze is not considered a sweet coating
• cooking ingredients, such as flour, sugar, pre-mixes and cake mixes
• fats and oils for cooking
• unflavoured milk, cream, cheese and eggs
• spices, sauces and condiments
• bottled drinking water, fruit or vegetable juice (of at least 90% by volume)
• tea and coffee (unless ready-to-drink)
• baby food and infant formula
• all meats for human consumption (except prepared meals or savoury snacks)
• fruit, vegetables, fish and soup (fresh, frozen, dried, canned or packaged)
• spreads for bread (such as honey, jam and peanut butter)
• breakfast cereals.

Sections within 1. Simple rules

• Taxable food
• When GST is applied in the supply chain

Last Modified: Monday, 3 August 2009