Private ruling: GST classification of food
Date of advice: 8 October 2025
Published: 1 December 2025
Ruling period: 24 May 2025 to 23 May 2029
Date scheme commenced: 24 May 2025

Ruling: Q1: Is the supply of the food spread product GST-free? | A1: Yes

Relevant facts and circumstances: You are registered for GST. You sell a specified food spread (the Product). The Product is stocked on shelves and does not require refrigeration, and while more commonly packaged in sealed jars is also available in a tub. The Product is made from a nut cream, small chunks of pastry and a combination of food additives. The nuts are sourced in the form of a bulk spreadable cream supplied as a GST-free product. The pastry is pre-cooked, supplied in bulk and as a GST-free product. The Product is marketed as a spread and can be spread on bread or toast.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 s ection 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 section 38-4 | A New Tax System (Goods and Services Tax) Act 1999 Schedule 1

Reasons for decision: Summary: Section 38 2 of the GST Act provides that a supply of food is GST-free. Food is defined in section 38-4 of the GST Act to include ingredients for food for human consumption (paragraph 38-4(b)). This includes goods to be mixed with or added to food for human consumption including condiments, spices, seasonings, sweetening agent or flavourings (paragraph 38-4(1)(e)). Food Industry Partnership Issues Register, Issue 18, provides that goods that satisfy paragraph 38-4(1)(e) of the GST Act are for the purpose of adding to the taste or flavour of food, as indicated by the scope of the words 'including condiments, spices, seasonings, sweetening agents or flavourings'. Based on the information provided, the Product is marketed as a spread and its predominant use is that of a spread to be used on bread and toasts. Therefore, the Product satisfies the definition of food in paragraph 38-4(1)(e) of the GST Act being 'goods to be mixed with or added to food for human consumption'. Goods and Services Tax Industry Issues - Detailed Food List (DFL) The DFL, which is a public ruling for the purpose of the Taxation Administration Act 1953 at item 759 categorises spreads for bread (such as, jam, peanut butter) as GST-free. It further notes that spreads for bread are condiments for the purposes of paragraph 38-4(1)(e) of the GST Act. The Product has very similar features to other spreads. The product is sold in retail outlets on the shelf alongside other spreads such as peanut butter, jam, Nutella products and other nut spreads. Therefore, item 759 of the DFL applies to the Product and the supply of the Product will be GST-free.