Tax laws to burn Aussies on summer essential: 'Many of us struggle'

With the mercury soaring to over 40 degrees in some parts of Australia this week, we deserve the moniker of “sunburnt country." While our country may be sunburnt, our skin certainly shouldn't be, with products from the ever-divisive CoolCabanas to protective driving gear being available to keep us safe from the sun's harmful rays.

Of course, the foundation of sun safety starts with sunscreen, which has come a long way since the first product hit the shelves in the 1930s. Our attitude towards the sun has done the same and we now understand how vital it is to slip [on a shirt], slop [on some sunscreen], slap [on a hat], seek [shade] and slide [on sunnies].

Sun safety has been deemed so essential that sunscreen with a sun protection factor of 15 or above is GST-free, making it that tiny bit more affordable for all.

Aussies could be asked to pay more for certain sunscreens

But there is a hitch and it’s something manufacturers with skin in the game are shouting about.

The criteria for GST-free sunscreen has always been a product “marketed principally for use as sunscreen.” But as the beauty industry has evolved, the trend has been for products to do more than one thing. Who doesn’t love a tinted moisturiser that protects skin and gives sheer coverage? Or a blush that doubles as a lip or eye colour.

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It’s the same for sunscreen and products like Hey Bud’s Serving Shade combine an SPF 50 lotion with moisturising and priming benefits.

It means they fall into a grey area because, despite providing that vital SPF, they do other stuff too and the tax office has taken note.

Tax office 'considering feedback' on sunscreen GST

In August 2024 it started looking at the issue and an ATO spokesperson told Yahoo Lifestyle, that “The ATO is updating its guidance to clarify how the law applies to sunscreen products,” and that it’s “currently considering all feedback.”

“Increasingly, modern products are being developed and marketed as having other benefits or uses, such as moisturising and tint," the spokesperson said. “However, to be GST-free, a sunscreen product must be ‘marketed principally for use as sunscreen’”.

To judge whether this is the case the spokesperson said it’s: “a matter of overall impression involving an objective assessment of all the marketing information. [This] includes labelling, packaging, display circumstances, product placement, promotion and advertising.”

Aussie company calls out 'unfair' GST proposal

Of course, the peeps like those at Hey Bud think it’s a bit unfair and don’t want their customers to be burnt by the tax man, especially when they say their product makes wearing sunscreen way more attractive.

“In an ideal world, sunscreen would be something we all apply consistently without a second thought. Yet, in reality, many of us struggle to make sunscreen a daily habit,” a Hey Bud spokesperson told Yahoo Lifestyle. “That’s why we spent over 12 months expertly formulating a sunscreen that will actually make you want to wear sunscreen every day: Serving Shade SPF50 Sunscreen hydrates, primes, and protects without the greasy, heavy feel. [It] offers not just UVA + UVB protection but also skincare benefits.”

Just because the Hey Bud product hydrates and primes as well as provides sun protection, they said users shouldn’t be penalised and have to pay GST for it.

“You are being taxed for choosing a sunscreen that fits your lifestyle better, works for your routine and ultimately, hopefully, has you wearing your SPF more often,” the spokesperson said.

Call for change

Hey Bud is so fired up about the issue they have started a petition that’s garnering plenty of signatures from customers who feel the same way they do.

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“We’re calling on the Australian government to ensure multi-purpose sunscreens stay GST-free, helping make sun safety more accessible for everyone,” the spokesperson said about the Hey Bud change.org petition. “We’re urging Aussies to join our cause by signing the petition and letting the tax man know this is something we won’t let pass quietly.”

To find out more about Hey Bud's Serving Shade SPF50 Sunscreen, click here.

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