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Marketing and the GST classification on food

How food items are marketed affects their GST status.

Last updated 24 July 2025

How a product is marketed affects its GST classification

The way food items are marketed affects their GST classification. Marketing includes:

  • how goods are promoted and advertised
  • the labelling (including the name), instructions, packaging, display and placement of the goods in the store.

Products that are GST-free

The following kinds of products are GST-free:

  • malt extract marketed principally mainly for drinking
  • preparations that are marketed principally as tea, coffee, or malted beverages
  • preparations marketed principally as substitutes for tea, coffee or malted beverages
  • dry preparations marketed to flavour milk
  • beverages and ingredients for beverages marketed principally as food for infants or invalids.

Products that are taxable

The following kinds of products are subject to GST:

  • food marketed as confectionery
  • food marketed as a prepared meal, excluding soup.

For more information, see Goods and Services Tax Determination GSTD 2025/1 Goods and services tax: supplies of food of a kind marketed as a prepared meal.

QC81548