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  • Issue 8


    For source of ATO view, refer to:

    • GSTR 2001/8 - Goods and services tax: apportioning the consideration for a supply that includes taxable and non-taxable parts
    • Detailed food list

    Generally, where food is a combination of one or more foods packaged together, at least one of which is taxable, then that food product will be subject to GST (for example a snack pack containing cheese and crackers - refer Issue No. 7 - Snack Packs). This is provided for in paragraph 38-3(1)(c) of the GST Act.

    However, paragraph 1.18 of the Further Supplementary Explanatory Memorandum to the GST Bill clarifies the intended scope of this provision by stating that it does not apply to a mix of packaged goods packed and sold together, such as a hamper.

    Paragraph 1.18 states that where a mix of individually packaged goods is packed and sold together, these items are to be taxed individually. For example, where a hamper contains a packet of biscuits, a box of chocolates and a jar of coffee, the biscuits and chocolates are subject to GST and the coffee is GST-free. If there is a need to apportion the value of the hamper to each of the items to determine the GST payable, the rule in section 9-80 will be relevant.

    A 'hamper' is defined in The Macquarie Concise Dictionary as 'a large basket or receptacle made from cane, wickerwork, etc., usu. with a cover'. Based on this definition, it is the ATO view that for the purposes of the GST Act a 'hamper' can be a basket, decorative box or other similar container, containing any number of separately identifiable products. A hamper will be sold for a single consideration.

    Like a snack pack, a hamper will include various food items. It may also include things other than food. However, unlike a snack pack, the different products in a hamper are not designed to be combined or blended for simultaneous consumption.

    For example a hamper may be a large cane basket consisting of tea, biscuits, champagne, chocolates, jam, Christmas pudding and mince pies. Where a hamper includes goods which are subject to GST and other goods which are GST-free, the value of the taxable goods will be calculated according to section 9-80 of the GST Act.

    Where the basket or similar packaging has a lasting value (for example, a picnic basket), the supply of the basket may be subject to GST.

    It should be noted, that where you are making a mixed supply the tax invoice need only show the value of the taxable supplies and the GST-free supplies and not an itemised list of all products contained in the hamper.

      Last modified: 01 Apr 2019QC 16451