Sunblock must be primarily marketed as sunscreen to remain GST-free, the Australian Taxation Office says.
Sunscreen products are only GST-free if they are marketed principally for use as sunscreen, the Tax Office says.
A surge of luxury sunscreens and “multi-use” cosmetic creams that combine sun protection with anti-ageing and foundation elements – some costing hundreds of dollars for a 100ml tube – has led to confusion over which products are subject to the GST. “If a product is not marketed principally for use as a sunscreen, it is, and always has been, subject to GST.”
The ATO is encouraging skincare suppliers to review its updated guidance to ensure their products are priced correctly.In its draft determination, the Tax Office said products labelled as sunscreen, sun protection, broad-spectrum protection, UVA and UVB protection, water and sweat resistant, and “reef friendly” were consistent with marketing for use as sunscreen.
But he said his brand shouldn’t be punished for combining strong sun protection – SPF50 and two hours’ water resistance – with “enhanced protection for the skin”.Cancer Council national skin cancer committee chair Professor Anne Cust said the best sunscreen was broad-spectrum, water-resistant SPF50 or SPF50+, used and reapplied daily.
In 2014, four months after the birth of her first child, Hamilton booked in for a skin check and the doctor found a melanoma – the deadliest form of skin cancer – on her ankle.
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