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Edited version of private advice
Authorisation Number: 1052474120802
Date of advice: 18 November 2025
Ruling
Subject: GST and supply of breakfast cereals
Question
Is the supply of the Products GST-free pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
A supply of food is GST-free under section 38-2 of the GST Act if the product satisfies the definition of food in section 38-4 of the GST Act and the supply is not excluded from being GST-free by section 38-3 of the GST Act.
The supply of the Products is GST-free under section 38-2 of the GST Act because:
• the Products satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption (whether or not requiring processing or treatment); and
• the supply of the Products does not fall within any of the exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
• You are a retailer of the Products.
• The Products are available in a number of flavours.
• The ingredients include grain, vegetables, fruits and prebiotic.
• The Products are marketed as a breakfast cereal for a specific age group. The Products are to be mixed with water or choice of milk.
• The Products are sold in a resealable packet which contain a specified weight that equates to a number of suggested servings.
• The Products will be available in a particular section of stores alongside similar products.
• You provided images of the packaging.
• You provided samples of the Products. The pack contains food items that have a light and airy texture. They are crispy and crunchy with a sweet taste and the flavour of fruit.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38-2
A New Tax System (Goods and Services Tax) Act 1999 section 38-3
A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-3(1)(c)
A New Tax System (Goods and Services Tax) Act 1999 section 38-4
A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-4(1)(a)
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