Proposed renewal of GST-free Supply (Drugs and Medicinal Preparations) Determination 2015

Overview

The Department of Health, Disability and Ageing wants to renew a rule called the GST-free Supply (Drugs and Medicinal Preparations) Determination 2015 (the Determination). The Determination makes small packs (25 tablets or fewer) of pain relief medicine containing aspirin, ibuprofen, and paracetamol free from GST (Goods and Services Tax).

The proposal is to remake the Determination on the same terms. This will continue the GST-free status for small packs of these common pain relief medicines.

We want to hear from suppliers, manufacturers and the public about remaking the Determination, which will expire on 1 October 2025 unless it is renewed.

The Determination can be viewed on the Federal Register of Legislation:  www.legislation.gov.au/F2015L01466

Further information

What does the Determination do? 

The Determination grants GST-free status to small packs (packs of 25 or less) of pain relief medicine containing aspirin, ibuprofen and paracetamol. This means the products in the Determination are exempt from GST. These items have been made GST-free to give Australians the same conditions as when buying larger packs of the same items in pharmacies.

Why is the Determination expiring?

The Determination is due to sunset (run out or expire) on 1 October 2025. This is  due to section 50 of the Legislation Act 2003 which limits Determinations to 10 years.

What happens if the Determination isn’t renewed?

If the Determination isn’t renewed this will mean that from 1 October 2025 GST will be applied. This could make some small packs of pain relief medicine more expensive.

Will availability or regulation of pain relief medicines change if the Determination isn't renewed?

The only thing being reviewed in this consultation is the GST-free status of small packs of pain relief medicines. There will be no change to availability, scheduling or the way pain relief medicines are accessed.

What is GST?

The goods and services tax (GST) is a tax on most goods, services and other items sold or used in Australia. GST-free means you don’t pay this tax when using the product or service.

Why your views matter

Your feedback will help us understand what people want and decide whether to keep the rule the same.