Less bread for your money: the GST will be imposed on a wider range of foods, including salads, sandwiches and fruit, because taxman says that walking is necessary to keep up with changing food trends
- The Australian tax authorities intend to make changes to the GST approach
- The ATO said the current food exclusions are unclear
- A formal entry has not yet been made to treasurer Josh Frydenberg
The Australian tax authorities will propose to Prime Minister Scott Morrison that GST be applied to a wider range of foods.
The documents claimed that the way GST is currently applied to food is confusing and can cause a loss of income for some companies, as some foods are taxed differently by packaging, The age reported.
Some examples of GST-free food are meat, dairy, fruit, vegetables and baby food.
There may, however, be some gray areas – for example, a pre-packaged salad is seen as a pre-prepared meal, but the industry claims it is fresh food.
The Australian tax authorities will make it clear to the Morrison government that there should be clearer guidelines on what food is linked to a GST, because how they are applied now & # 39; confusing & # 39; is. Proposed treasurer Josh Frydenberg and Prime Minister Scott Morrison
Another bottleneck is brioche sandwiches because they could be exempt from hamburger buns, but are considered brioche, but not.
A final bottleneck is a mix of dried fruits – where only taxes are paid for blends with glace cherries.
The ATO has suggested deleting the current categorization approach to a & # 39; principle-based approach & # 39; where unprocessed foods would be considered GST-free and all other foods would be taxable.
However, this could entail higher costs.
There are a number of collisions that are considered GST-free – for example, a pre-packaged salad, which would usually have the ready-made load, could be classified as fresh food. While brioche sandwiches don't get the exception that hamburger buns do
The changes would place food in the same line as drinks when it comes to GST, where everything is taxed, unless specifically stated as GST free.
The ATO's suggestion regarding approaching GST is reportedly part of a larger list that the organization will present to treasurer Josh Frydenberg, but this is not yet final.
& # 39; The role of the ATO is to manage the tax and super systems and not to advise on policy. In this case, an internal job sheet was prepared within the ATO to consider options for an alternative way to identify foods that are exempt from GST, & said the statement.
A final bottleneck is a mix of dried fruits – where only taxes are paid for blends with glace cherries
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