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Emerging GST issues for health products

Check the latest emerging issues on the GST classification of health products.

Last updated 28 January 2026

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 where products have changed over time
  • identifying common misunderstandings or issues on specific products 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 health guidance and resources we have available.

Medical aids and appliances

Certain Medical aids and appliances are GST-free if they are specifically designed for people with an illness or disability (design test) and not widely used by people without an illness or disability (use test).

We are considering if further guidance is needed to support you in determining if these design and use tests are satisfied.

Items we are currently considering where the design and use tests are relevant include:

  • upper and lower limb braces and support
  • bidets
  • cushions for people with disabilities
  • vaporisers.

You can view current guidance on the design and use tests here:

Burn products

We've updated Medical aids and appliances to clarify when burn products made from hydro gel or hydro colloids are GST-free.

The information also details a transitional compliance approach for taxpayers who have treated burn gels, sprays or creams made from hydro colloids or hydro gel as GST-free incorrectly.

We've updated ATO Interpretative Decision ATO ID 2003/1102 to clarify it doesn't apply to gels, sprays and creams.

Waterproof bedding products

We've updated Medical aids and appliances to clarify that the following waterproof bedding products are taxable where they are designed for, or widely used by, people in the general community:

  • mattress protectors
  • pillow protectors
  • quilt protectors.

The information also details a transitional compliance approach for taxpayers who have treated waterproof mattress, pillow and quilt protectors as GST-free incorrectly.

Sunscreen

We published Goods and Services Tax Determination GSTD 2025/2 Goods and services tax: supplies of sunscreen, which sets out our view on when a supply of a sunscreen preparation is GST-free.

Sunscreen products are GST-free if they:

  • are for dermal application (that is, for application to the skin, including the lips)
  • contain SPF of 15 or more
  • are required to be on the Australian Register of Therapeutic Goods (ARTG), and
  • are marketed principally for use as sunscreen.

Suppliers may not have direct knowledge of whether their sunscreen products are required to be included on the ARTG. We've included a compliance approach in the Determination that helps them determine this.

The GSTD replaces the existing guidance on sunscreen preparations in:

QC16263