GST issues registers
Pharmaceutical health forum
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Issue 2. Section 38-47 Other GST-free health goods
Non-interpretative - straight application of the law.
Explanation
Section 38-47 states that a supply is GST-free if it is a supply of goods of a kind that the Health Minister, by determination in writing, declares to be goods for which the supply is GST-free. Once an item meets all of the requirements set out in the Ministerial Determination, then its supply is GST-free all the way down the supply chain. One exception to this is when the supplier and the recipient agree to treat the supply as if it were taxable pursuant to subsection 38-47(2).
Related questions - The following questions explore what is within the concept of 'Other GST-free Health Goods' for the purposes of section 38-47. None of the questions and answers should be read in isolation but rather as part of the whole of the information contained in this document.
| Date | >Issue |
|---|---|
| 26/02/01 05/06/2013 (u) | 2.a. What other health goods has the Health Minister, by determination in writing, declared to be GST-free? |
| 26/02/01 | 2.b. Are supplies of the goods listed above only GST-free where supplied to an individual for private or domestic use or consumption? |
| 26/02/01 | 2.c. How can additional health goods become GST-free? |
| 26/02/01 | 2.d. What are 'sunscreen preparations for dermal application'? |
| 26/02/01 | 2.e. What factors should be taken into account in determining whether a sunscreen preparation is marketed principally as a sunscreen? Are supplies of sunscreen preparations dermal application with a SPF rating factor of 15 or more, an ARTG number and which satisfied the 'marketed principally for use as a sunscreen preparation for humans' test used in item 91 of Schedule 1 to the Sales Tax Act, GST-free? |
| 26/02/01 | 2.f. Do folate supplements for the purposes of the Health Ministers Determination include any product with folate included in the formulation? For example: multivitamins. |
| 04/12/18 (a) | 2.g. Is the supply of menstrual products GST-free? |
(a) added, (u) updated, (w) withdrawn
2.a. What other health goods has the Health Minister, by determination in writing, declared to be GST-free?
Non-interpretative - straight application of the law.
The GST-free Supply (Health Goods) Determination 2011 for the purposes of section 38-47 provides that the following categories of goods will be GST-free where the goods are required to be included in the Australian Register of Therapeutic Goods, or are goods in a class of goods required to be included in the Australian Register of Therapeutic Goods:
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- condoms
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- barrier dams, femidoms and harness devices
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- personal and surgical lubricants that are water-soluble and suitable for use with condoms
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- preparations for use by humans that contain folic acid as a single active ingredient and have a recommended daily dose of 400 to 500 micrograms
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- sunscreen preparations for dermal application that are marketed principally for use as sunscreen and have a sun protection factor rating of 15 or more
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- nicotine for use as an aid in withdrawal from tobacco smoking where the nicotine is administered in preparations for transdermal or oromucosal use.
The A New Tax System (Goods and Services Tax) (GST-free Health Goods) Determination 2018 provides that the following products are GST-free when supplied on or after 1 January 2019:
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- maternity pads
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- menstrual cups
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- menstrual pads and liners
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- menstrual underwear
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- tampons
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- other similar products specifically designed to absorb or collect lochia, menses or vaginal discharge.
Additional goods can only be added by way of a further written determination by the Health Minister.
2.b. Are supplies of the goods listed above only GST-free where supplied to an individual for private or domestic use or consumption?
Non-interpretative - straight application of the law.
No. Goods which satisfy all of the elements of the Health Ministers Determination are GST-free at all stages of the supply chain.
2.c. How can additional health goods become GST-free?
Non-interpretative - straight application of the law.
Additional goods can only be added by way of a further written determination by the Health Minister.
2.d. What are 'sunscreen preparations for dermal application'?
| The content for this issue is a public ruling for the purposes of the Taxation Administration Act 1953 and can be found here . |
2.e. What factors should be taken into account in determining whether a sunscreen preparation is marketed principally as a sunscreen? Are supplies of sunscreen preparations dermal application with a SPF rating factor of 15 or more, an ARTG number and which satisfied the 'marketed principally for use as a sunscreen preparation for humans' test used in item 91 of Schedule 1 to the Sales Tax Act, GST-free?
| The content for this issue is a public ruling for the purposes of the Taxation Administration Act 1953 and can be found here . |
2.f. Do folate supplements for the purposes of the Health Ministers Determination include any product with folate included in the formulation? For example, multivitamins.
Non-interpretative - straight application of the law.
No. The product must have folic acid as a single active ingredient and have a recommended daily dose of 400-500 micrograms.
2.g. Is the supply of menstrual products GST-free?
Non-interpretative - straight application of the law.
Yes. The A New Tax System (Goods and Services Tax) (GST-free Health Goods) Determination 2018 provides that the following products are GST-free when supplied on or after 1 January 2019:
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- maternity pads
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- menstrual cups
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- menstrual pads and liners
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- menstrual underwear
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- tampons
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- other similar products specifically designed to absorb or collect lochia, menses or vaginal discharge.
The Determination does not cover:
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- feminine washes marketed for feminine hygiene and/or vaginal washing and cleaning
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- feminine deodorants such as talc, powder and spray products marketed for feminine hygiene and/or to deodorise the vaginal area
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- intimate wipes marketed for feminine hygiene
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- supplements and vitamins marketed for use during menstruation and/or pregnancy
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- nursing pads
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- pads specifically designed for incontinence.
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