ATO reviewing if salad comes with GST

The ATO is reviewing whether salads should still be GST-free given the rapid changes of what goes into them.

The tax office is undertaking a review of GST guidelines for fresh food and whether salads, for example, should be tax-free.

Tax Commissioner Chris Jordan, appearing before a Senate hearing in Canberra on Wednesay was asked a question that brought back memories of John Hewson's infamous stumble nearly 25 years ago.

Back then it was whether the GST applied to a birthday cake. This time it was fresh salads.

"Are we going down the birthday cake path," Mr Jordan said in response to a question from Labor senator Jenny McAllister.

His deputy Timothy Dyce told the hearing the ATO was working with industry to review the guidelines to ensure they adequately reflect the very rapidly moving nature of salads or similar products.

"It would depend what the salad is," he said,

"Some combinations qualify as being GST-free, not just what's in them, but also how they are marketed."

Senator McAllister reminded the hearing of the agreement former prime minister John Howard struck with the Democrats to secure the passage of the GST, and salads were GST-free.

Mr Dyce said some people may define a salad as a bowl of lettuce.

"Some may define it as a barbecue chicken shredded up with three grains of rice on it."


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Source: AAP



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