Emerging issues
We publish the emerging GST issues we're seeing to give you early information when we are:
- considering whether new or updated public guidance is needed for new products or products that have changed over time
- identifying common misunderstandings or issues on specific product types to help you correct any misclassification.
We'll update these emerging issues on a regular basis. You can also find more information about the GST food classification guidance and resources we have available.
Biscuit goods
Rice cakes
Our current view on rice cakes is explained in Issue 26 – Are crispbreads and rice cakes subject to GST?. It outlines that only rice cakes made principally from compressed cereal are GST-free.
The detailed food list (DFL) entry 656 currently specifies that all rice cakes are GST-free, despite including a note implying it only covers rice cakes made principally from compressed cereal.
We're reviewing DFL entry 656 to make it clearer and easier to understand that not all rice cakes are GST-free.
While this is being reviewed, you can choose to rely on either DFL entry 656 or Issue 26 as they both are public rulings.
Dried or crispbread products
Item 32 of Schedule 1 provides that food that is, or consists principally of biscuits, cookies, crackers, pretzels, cones or wafers is not GST-free. Issue 26 – Are crispbreads and rice cakes subject to GST? explains that crispbreads fit within the definition of a biscuit and are subject to GST. It also states that dried bread products, such as oven baked toasts, mini toasts and rusks, are not considered to be crispbreads.
DFL entry 1296 currently lists all grissini (bread sticks) as GST-free. This entry is too broad as some bread sticks could be crispbreads and are subject to GST.
We're reviewing the principles from the Lansell House court decision to determine if our guidance about dried or crispbread products, including DFL entries, needs to be updated.
While this is being reviewed, you can rely on DFL entry 1296.
Toddler formula
Item 13 of Schedule 2 provides that 'beverages, or ingredients for beverages, of a kind marketed principally as food for infants or invalids' are GST-free. Issue 14 – Beverages for infants outlines our current view that an infant is defined as a person up to the age of 12 months. Based on our current view, formula which is marketed principally for children above the age of 12 months is not GST-free.
Since issue 14 was published, there have been significant developments in the industry and we've received feedback asking us to review if an infant can be a person beyond the age of 12 months.
We're reviewing our view on how GST applies to toddler formula marketed principally for children above the age of 12 months. We won't devote compliance resources to these products, or to products that are marketed principally as ingredients for toddler formula, until this review is completed.
You can be updated about this review by checking our page for public advice and guidance under development.
Confectionery
Item 8 of Schedule 1 provides that confectionery, food marketed as confectionery, food marketed as ingredients for confectionery or food consisting principally of confectionery are not GST-free.
From our advice and compliance work we have identified inconsistent application of these provisions. We are reviewing our guidance products to determine if further clarification is required.
The following guidance products relevant to this review include:
- Issue 12 - Food marketed as confectionery or ingredients for confectionery - this provides guidance on the application of Item 8 of Schedule 1
- Issue 29 - The GST treatment of different types of chocolate
While this is being reviewed, you can rely on Issue 12 and Issue 29.
Fruit bars and strips
Fruit bars and strips that are confectionery or marketed as confectionery are taxable.
DFL entry 361 states fruit bars and strips are GST-free when they're made from 100% of fruit ingredients.
A previous DFL entry that was removed in 2011 listed fruit snacks (including processed fruit bars and strips) with a sugar content less than 40% as GST-free.
In considering if further public guidance for confectionery is needed, we will review whether fruit bars and strips that are not made from 100% of fruit ingredients should be taxable.
While this is being reviewed, you can rely on DFL entry 361 and Issue 12.
Food versus supplements
Our current view on supplements is set out in Issue 21 - Vitamins and minerals. The supply of nutritional supplements, including vitamins and minerals supplied in a capsule, caplet or tablet form, are taxable supplies. This is because the essential character of a supplement is not considered to be food for human consumption under paragraph 38-4(1)(a) of the GST Act.
We're reviewing this guidance to determine if further guidance should be developed to explain the principles to distinguish food and supplements. Any such guidance would need to cover principles that help determine which of the following 3 possible classification outcomes apply to a product:
- not food - taxable
- food that is not an ingredient for a beverage - GST-free, if the product is not of a kind of food listed in Schedule 1
- food that is an ingredient for a beverage - taxable, unless the food is of a kind listed on Schedule 2.
While this is being reviewed, you can rely on Issue 21.
Soup
Item 4 of Schedule 1 provides that food marketed as a prepared meal, but not including soup is not GST-free. This exclusion from item 4 for 'soup' is not addressed in Goods and Services Tax Determination GSTD 2025/1 Goods and services tax: supplies of food of a kind marketed as a prepared meal.
The classification of food products is a matter of 'overall impression', informed by common sense and common experience. We are considering if guidance is required.
Bakery items
Food of a kind listed within the category 'bakery products' in items 20 to 27 of Schedule 1 are taxable and not all items listed must be baked or cooked for the item to apply.
We have identified inconsistencies in the application of these items, particularly regarding when the type of food item listed is one that:
- has a characteristic that requires baking or cooking; or
- can be taxable despite being sold raw.
Clause 2 of Schedule 1 operates to ensure that bakery products are subject to GST regardless of whether they are supplied hot or cold, or require cooking, heating, thawing or chilling before consumption. So if supplied raw or frozen products can be 'food of a kind' listed in Schedule 1.
We're reviewing our guidance on how GST applies to bakery products, including the following:
Specific DFL entries to be reviewed include:
- entry 179 (chicken filo parcels, uncooked), which has not considered clause 2 of Schedule 1 or the application of item 25 of Schedule 1 (of a kind of pastizzi).
- entry 31 (beef wellington) which hasn't considered the application of clause 2 of Schedule 1. Given item 22 of Schedule 1 (pies, pasties, sausage rolls) can apply to uncooked (raw) products this outcome appears to be inconsistent.
While this is being reviewed you can rely on DFL entries 179 and 31.
Dried or dehydrated fruit for adding to beverages
Through our compliance and advising work we identified that dried or dehydrated fruits that are designed for flavouring or decorating alcoholic beverages are commonly misclassified.
Our view is that these products are taxable because they are ingredients for beverages and are not GST-free under Schedule 2.
Review complete
We've reviewed DFL entry 356, which lists 'fruit (fresh, dried, canned, packaged)' as GST-free. We've clarified that it is only GST-free when the use of the product is not for the purpose of adding to beverages (based on the design and marketing of the product). A dried or dehydrated fruit product is taxable when it is designed and marketed as an ingredient for a beverage.
Refer to the updates to the DFL dated 23 July 2025:
- DFL entry 356 has been updated to exclude fruit that is an ingredient for a beverage.
- DFL entry 1865 has been included to clarify that a dried or dehydrated fruit for use in flavouring or decorating beverages is taxable.