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Do you sell compression socks?

General-purpose, sports or athletic, travel, or maternity compression socks … check if GST applies

Published 3 December 2023

If you sell compression socks, check you’re applying GST correctly to these products.

Compression socks are only GST-free if they're specifically designed for people with an illness or disability, and not widely used by people without an illness or disability.

GST applies to compression socks when they’re designed for, or widely used by, people in the general community to:

  • prevent illness or disability, or
  • prevent legs and feet from getting tired or swollen from prolonged standing.

This will include products such as travel socks, general-purpose compression socks, sports or athletic compression socks and maternity socks.

If you haven’t applied GST correctly to these products, make sure you do so.

We've withdrawn ATO Interpretive Decision 2003/953 GST and supply of multi-purpose compression socks, as it may have created the impression that all general-purpose compression socks and travel socks are GST-free.

If you treated:

  • general-purpose compression socks and travel socks as GST-free in good faith, we won't take compliance action for tax periods up to and including 29 February 2024
  • sports or athletic compression socks and maternity socks as GST-free, we encourage you to make a voluntary disclosure as these types of socks weren’t covered in the ATO Interpretive Decision.

Find out more about how GST applies to the supply of compression socks.

Remember, registered tax and BAS agents can help you with your tax.

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