Olive business
Q&A: GST and olive products The AOA OliveCare® Administrator received a query from a signatory about GST and olive products. We looked into it and found the situation is not that simple - and, it appears, is not fully understood across the industry. So to provide some clarity, we delved even further into the legislation: here’s the outcome of our investigations. Professor John Fielke, Ag-IQ/Olives 1 More Q#1: Do you know if there is a concise ruling on GST on table olives that are sold in a pack? To me it appears that if it’s a snack food it has GST. If it is an ingredient it does not. AOA OliveCare® Administrator A: Good question. It’s the first time I have been asked this and, on checking online, I note that many olive producers are selling their table olives inclusive of GST. And it would seem that there is a lot of confusion generally on the issue. I know that Woolies have staff dedicated to constantly checking for GST compliance and seeking specific rulings on individual items. Supermarket tax invoices should show which food items are subject to GST - usually by having an asterisk next to the item – so our team checked their invoices to see what’s being done. One bought a major brand of EVOO at Woolworths and the invoice has no GST marked against it. Another bought both olive oil and table olives (the latter pitted, to be precise). The receipt showed that the oil was sold GST-free, while the table olives were marked as having GST added. However, my reading of the ATO GST Act (refer below) is that, while table olives may be consumed as a savoury snack, they have been specifically classified as a GST-free food.
Goods and Services Tax (GST) Industry Issues - Detailed Food List
This list details the GST status of major food and beverage product
lines. It includes a number of olive products, as follows: Olive oil marketed for culinary purposes GST-free Fat/oil marketed for culinary purposes. Paragraph 38-4(1)(f)* of the GST Act applies. Olive oil spread GST-free Fat/oil marketed for culinary purposes. Paragraph 38-4(1)(f) of the GST Act applies. Olives (black, green, kalamata, marinated, pitted, stuffed) GST-free Food for human consumption that is not of a kind specified in Schedule 1** of the GST Act. Tapenade GST-free Food for human consumption that is not of a kind specified in Schedule 1 of the GST Act. Oil cooking spray GST-free Fat/oil marketed for culinary purposes. Paragraph 38-4(1)(f) of the GST Act applies. Oil marketed for non-culinary purposes Taxable Paragraph 38-4(1)(f) of the GST Act does not apply to an oil differentiated for a non-food use. Examples include massage oil and aromatherapy oil. *Food is defined in subsection 38-4(1) of the GST Act to include ingredients for food for human consumption. **Schedule 1 of the GST Act is a listing of food that is not GST-free (i.e. taxable)
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Issue 122 • December 2021 • Australian & New Zealand Olivegrower & Processor • 39
