Discrepancies between food product classification under the Food Standards Code and GST regimes
The way that a food product is categorised can have significant implications in determining its regulatory requirements. When classifying food products, most businesses turn straight to the Australia New Zealand Food Standards Code. However, other legislative regimes also impose different requirements depending on classification. One such regime is Australia’s Goods and Services Tax framework, which determines whether tax is or is not payable on the sale of a food product. This article explains the two frameworks and raises some examples where the discrepancies in food product classification are apparent.