GST (Goods & Services Tax) is the Australian equivalent of VAT, and is charged at the flat rate of 10% on most products.

Some food is included in this, and some isn't.

eg:
Some shopping examples with NO GST
Orange Juice
Oxo Cubes
Cheese
Fresh Almonds
Flour
Breakfast Cereal


Some Examples with GST
Chocolate Muffins
Frozen Apple Pie
Sponge Cake
Wagon Wheels

Interesting that new house building attracts GST here but no VAT in the UK. (Don't worry, it's included in the quoted price here)

Lesley

Do you know what they base the criteria on. Why would oxo cubes be GST free etc? Is there an easily understood web site - yeah right :rolleyes:

The GST simple rules on Food guide http://www.ato.gov.au/businesses/content.a...4.htm&page=2&H2

I think the basic idea was that the basic foods were exempt, but that packed foods had GST. ie: Frozen apples probably have GST, but fresh Apples don't. I suppose OXO cubes come under the "Cooking ingredients group", such as flour, sugar, pre-mixes and cake mixes, which are all exempt. However, why a cake mix is exempt beats me, as I would class it as a pre packed part processed item.

The basic principle seems a bit like the original VAT, when we had 2 rates in the UK. I remember it well; That smooth plastic type toilet roll was rated as standard rate VAT, but the soft tissue toilet roll was rated at the higher Luxury rate :D