Private ruling: GST and supply of milk
Date of advice: 17 February 2026
Published: 7 April 2026

Ruling: Q1: 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)? | A1: 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. | Q2: Is the importation of the Products a non-taxable importation under paragraph 13-10(b) of the GST Act? | A2: 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.