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ATO’s Response to Simplot GST Case: Implications for Food Product Suppliers

  • The Australian Taxation Office (ATO) published a decision impact statement in response to the Simplot case.
  • The court ruled that certain frozen food products were not exempt from GST and their supply or importation was taxable.
  • The ATO believes that the Simplot decision does not require a change in how it interprets and applies the GST law.
  • The ATO stated that it will be rare for a previously non-taxable meal component to now be considered taxable.
  • Frozen mixed vegetables, frozen crumbed chicken pieces, and frozen fish pieces are not considered “food of a kind” marketed as a prepared meal.
  • Deloitte Australia believes that the ATO’s interpretation has the potential to broaden the types of products classified as taxable.
  • The ATO is updating its guidance and taxpayers should review whether their products fall within the taxable category.
  • The ATO is unlikely to change its approach based on industry feedback.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


VAT news
VAT news