Hi All
Leo and the broader working group, I'm sorry I wasn't able to make yesterday's meeting; it looked great, and I look forward to reaching out to Grainne and Darrent to learn more about their products.
For those interested, we received the following correspondence from the ATO:
GST and Compression Socks
Make sure you're applying GST correctly to compression socks.
The Australian Taxation Office (ATO) has withdrawn ATO Interpretive Decision 2003/953 GST and supply of multi-purpose compression socks, as it may have created the impression that all general-purpose compression socks and travel socks are GST-free.
If you treated general-purpose compression socks and travel socks as GST-free in good faith, the ATO won't devote compliance resources to reviewing the GST treatment of these products for tax periods up to and including 29 February 2024.
However, if your business treated sports or athletic compression socks and maternity socks as GST-free, the ATO encourages you to make a voluntary disclosure as these types of socks weren't covered in the ATO Interpretive Decision.
GST applies to compression socks when they're designed for, or widely used by, people in the general community to:
- prevent illness or disability, or
- prevent legs and feet from getting tired or swollen from prolonged standing.
This will include products such as travel socks, general-purpose compression socks, sports or athletic compression socks and maternity socks.
Compression socks are only GST-free if they're specifically designed for people with an illness or disability, and not widely used by people without an illness or disability.
Find out more about how GST applies to the supply of compression socks on the ATO website.
------------------------------
Steven Brown
Policy and Advocacy Officer
Australian Podiatry Association
------------------------------