Guide
GST in specific situations: food, health, sharing economy and more
Quick answers on how GST treats common situations such as food, education, ridesharing, donations and gifts.
Food
Basic food such as bread, milk, fruit, vegetables, meat and eggs is GST-free. Food that is prepared, served hot, eaten at the place of sale, or classed as a snack, confectionery, or a bakery product like cakes is generally taxable. Restaurant meals and takeaway are taxable.
Health, education and child care
Many health services provided by recognised practitioners, certain medical aids and appliances, many approved education courses and approved child care are GST-free. Cosmetic services and many courses that are only recreational are usually taxable.
Ridesharing and taxis
Drivers providing taxi or ride-sourcing services must register for GST from their first fare, and fares include GST. The driver can claim credits on related expenses such as fuel and maintenance, provided they have invoices and the use is for the business.
Short-term rentals and the sharing economy
Rent from a residential home used as a long-term residence is input-taxed. Short-term accommodation provided as part of a business may be taxable, and commercial residential premises such as hotels have separate rules. Hosting through a platform can have different consequences depending on your turnover and the nature of the activity.
Donations, gifts and sponsorship
A genuine gift has no GST. Sponsorship where the sponsor receives something in return, such as advertising, is generally a taxable supply by the recipient. Charities have extra concessions, so check the ATO guidance if you run or support one.
Vouchers, deposits and discounts
The GST treatment depends on the timing and the type of voucher. A deposit that forms part payment of a taxable sale generally attracts GST when the payment is received, depending on your accounting method. Discounts reduce the price and so the GST.
← Back to Glossary Open the GST calculator Browse the glossary