Recommendations from the Australian Taxation Office (ATO) to the federal government to broaden the GST on pre-prepared and packaged meals have been rejected by Prime Minister Scott Morrison and finance minister Matthias Cormann.
Earlier this week (May 25), The Sydney Morning Herald reported the ATO had allegedly argued for broadening the tax to take into account new eating and packaging trends.
Some current GST arrangements for food were confusing in that packaged salads, brioche buns, smoothie packs and dried fruit could be taxed differently depending how they are packaged, marketed and consumed, it said.
PM Morrison said he would not take up the ATO's suggestion about how packaged foods are rated under the GST. Senator Cormann reiterated the PM's message, and said the government had "no plans at all" to broaden the GST base.
The ATO has a detailed food list of what attracts GST.