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Edited version of private advice

Authorisation number: 1052501839476

Date of advice: 17 February 2026

Ruling

Subject: GST and supply of milk

Question 1

Is the supply of the Products GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer 1

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 section 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)(c) of the GST Act as beverages for human consumption

•                     the Products are milk of a kind listed in item 1(a) of the table in clause 1 of Schedule 2 of the GST Act (Schedule 2) and beverages of a kind marketed principally as food for infants of a kind listed in item 13 of Schedule 2 and

•                     none of the exclusions in section 38-3 of the GST Act apply.

Question 2

Is the importation of the Products a non-taxable importation under paragraph 13-10(b) of the GST Act?

Answer 2

Yes.

GST is not payable on an importation of goods into Australia where the importation is a non-taxable importation.

Paragraph 13-10(b) of the GST Act provides that an importation is a non-taxable importation to the extent that, had the importation been a supply, the supply would have been a GST-free or input taxed supply.

The importation of the Products is a non-taxable importation under paragraph 13-10(b) of the GST Act, because had the importation been a supply, it would have been GST-free, as outlined in Answer 1 above.

Relevant facts and circumstances

You distribute the Products in Australia.

The Products are pasteurised milk for use in the hospitals for feeding extremely premature babies.

The Products are available in a number of sizes for flexibility in feeding premature infants:

The label and literature of the Products contain the following:

•                     Ingredients - 100% milk

•                     Pasteurized milk for tropical feeds

•                     Product of another country

•                     Nutritionally incomplete. Infant may require additional vitamins and iron added separately from the product.

•                     Available frozen.

•                     Store at below 0°C or colder until ready to use. Do not microwave.

•                     Recommended method of thawing is refrigeration.

­        Place unopened (frozen) bottle in refrigerator.

­        Once the thawing process begins, administer within 48 hours.

­        Do not refreeze. Keep refrigerated until used.

       After the bottle has been properly thawed, remove the cap from bottle.

­        Gently swirl bottle to mix; DO NOT SHAKE. The product is now ready for use.

­        Measure out the milk using sterile syringes according to the feeding order.

­        Label each syringe with patient identifier and refrigerate until administered.

       The health of the infant depends on carefully following the directions for preparation and use.

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)(d).

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)(c).

A New Tax System (Goods and Services Tax) Act 1999 schedule 2.

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