Should foods with a tiny amount of gluten still be labelled gluten-free?
It's a question the federal government is being asked to consider.
Australian regulations mean products marketed as gluten-free must not contain any detectable gluten, oats or products of cereals with gluten.
That differs from the United States and European Union, where gluten-free foods can have levels of up to 20 parts per million.
But as technology improves, the amount of gluten that can be detected is getting smaller and smaller.
The Productivity Commission believes that, together with existing consumer law, is preventing producers from making a "gluten-free" claim even where the level of gluten poses little risk to health.
It wants the body in charge of food standards in Australia and New Zealand to define the level of gluten in foods that can be generally tolerated by people with an intolerance.
"A food standard that defines a safe level of gluten for gluten-intolerant consumers would provide greater certainty for producers and consumers," it said in a review of Australia's agricultural regulations, published on Tuesday.
The commission argues the current standard is costly for producers who want to label their products as gluten-free and customers who then bear that cost.
"Consumers who rely on gluten-free labels may also experience a reduction in food choices if producers choose not to make gluten-free claims due to prohibitive costs," the report said.
In addition, it claims the standard may act as a barrier to innovations in the food industry - such as the CSIRO's ultra-low gluten barley.
The commission has also recommended scrapping the mandatory labelling of genetically-modified foods.
It suggests it should be voluntary, claiming it is not an issue of food safety but of value for customers.
"Approved GM foods have been assessed by regulators to be as safe as conventional foods, and labelling requirements should align with these regulatory assessments."
