As Australians, we’re no strangers to the harsh rays of the sun. We’ve been taught from a young age to slip, slop, slap – slip on a shirt, slop on sunscreen, and slap on a hat. But for many Australians, especially those who are more conscious of skin health, the latest news from the Australian Tax Office (ATO) might have us tightening our sunhats a little more than usual.
The ATO has recently updated its GST guidelines, and this could mean that the price of some sunscreen products is about to go up. Traditionally, sunscreen has been exempt from the Goods and Services Tax (GST), but the ATO has drawn a line in the sand: only products marketed predominantly as sunblock will retain this exemption.
This change is not just a matter of semantics. It has real-world implications for your wallet. Under the new guidelines, products must be promoted primarily for sun protection, be applied to the skin, be included on the Australian Register of Therapeutic Goods, and have an SPF of at least 15 to avoid the tax. This means that a range of skincare items, including foundations, BB creams, moisturisers, and beauty products containing SPF, could see an immediate 10 per cent price increase.
The ATO’s decision comes as a response to the evolving skincare market, where products are increasingly being developed with multiple benefits, such as moisturising properties or a tint. However, the ATO is clear: to be GST-free, a sunscreen product must be marketed principally for use as sunscreen. If it’s not, it’s subject to GST, as it always has been.
So, which products will be affected? Those marketed as ‘2-in-one’, ‘3-in-one’, and ‘dual action’ are likely to be hit with the tax. On the flip side, items labelled as ‘sunscreen’, ‘sun protection’, ‘broad-spectrum protection’, ‘UVA and UVB protection’, ‘water and sweat resistant’, and ‘reef-friendly’ will remain exempt.
The Cancer Council has weighed in, reminding us that cosmetic products containing SPF often offer little to no protection from the sun. They advise that unless cosmetics are labelled with an SPF50 or SPF50+ rating, additional sunscreen should be worn under makeup for extended sun exposure. And remember, sunscreen isn’t a one-application wonder; it’s best practice to reapply every two hours.
The ATO’s move has prompted beauty suppliers to reassess their products to ensure they are classified correctly. For consumers, this means staying vigilant about the products we choose and how they are marketed. It’s a good reminder to read labels carefully and understand what you’re paying for – and now, how much more you might be paying.
With these changes in mind, how do you feel about the new GST guidelines for sunscreen? Will this affect your shopping habits or the products you rely on for sun safety? We’d love to hear your thoughts and experiences in the comments below—let’s discuss how we can all stay sun-safe and budget-conscious in this new landscape!
Also read: Yes, you still need to use sunscreen, despite what you’ve heard on TikTok
