Private ruling: GST and supply of breakfast cereals
Date of advice: 18 November 2025
Published: 5 January 2026

Ruling: Q1: 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)? | 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 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)