ATO issues final ruling clarifying GST treatment of sunscreen products

The Australian Taxation Office (ATO) has finalised GST rules for sunscreen products, urging local and international businesses selling into Australia to review product classifications to ensure correct tax treatment.

On 26 November, the ATO released Goods and Services Tax Determination GSTD 2025/2, which sets out when sunscreen products qualify for GST-free treatment. Under the ruling, a product qualifies only if it is applied to the skin (including the lips), carries a Sun Protection Factor (SPF) of 15 or higher, appears on the Australian Register of Therapeutic Goods (ARTG) when required, and is marketed primarily as sunscreen.

The ATO addresses the growing number of hybrid products, such as tinted sunscreens and moisturisers with SPF, and provides clear criteria to help sellers determine whether these items are principally marketed as sunscreen.

To support suppliers who may not have direct access to ARTG listing information, the ATO introduces a compliance approach. If businesses treat a sunscreen product as ARTG-required in good faith because it displays an AUST L or AUST R number, the ATO will not allocate compliance resources to review that treatment. This approach applies to past and future sales. 

The ATO urges all local and international businesses selling sunscreen into Australia to verify GST classifications immediately, especially for facial sunscreens and multipurpose skincare products. 

Further information appears in GSTD 2025/2.

Last updated: 09th Dec 2025

About the Author

Ro Elvinia is ABN Australia's Customer Success and Marketing Manager. She holds a bachelor’s degree in mass communication, majoring in journalism, and also has an academic background in civil engineering. With over a decade of experience in professional writing and a background spanning journalism, Australian immigration, and business services, Ro brings a unique mix of communication and analytical expertise. She works closely with international clients and contributes to ABN Australia's content strategy, helping global businesses stay informed and confident as they navigate the Australian market.