We all have our own ideas of what a prepared meal looks like, but how do you know if a product is food of a kind marketed as a prepared meal, and therefore subject to GST?
Our determination, GSTD 2025/1: Supplies of food of a kind marketed as a prepared meal, makes it easier for businesses to determine if products they import or supply are subject to GST. It provides practical guidance and a compliance approach for certain salad products to assist suppliers in classifying the broad range of modern salad products. Like all our determinations, this guidance is not a law change - it clarifies our view of how the existing GST law applies to these products, and how we’ll approach the way tax applies to them.
We’re applying a transitional compliance approach to certain categories of prepared meal products for tax periods ending on or before 31 December 2025. The products are:
- salad products, but not those sold in a dine-in or takeaway environment such as a food court or café
- products that require assembly
- uncooked chicken wraps.
This transitional approach will give you time to adjust your systems and contracts. The approach is set out in Appendix 2 of the determination, including its limitations.
For more information, see GST food classification guidance.
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