Food for Health Alliance has welcomed a draft determination released by the Australian Taxation Office (ATO) today, clarifying that GST applies to toddler milk products.
The move is not a new tax, but a reaffirmation of existing law. It’s also a win for public health, with Food for Health Alliance saying the clarification will encourage parents to reconsider buying these products altogether.
Not to be confused with infant formula, which is GST-free and an appropriate alternative for babies under 12 months of age who are not breastfed, toddler milks are unnecessary, costly, and offer no nutritional benefit beyond what young children ingest from regular food.
Despite their growing popularity, health authorities including the World Health Organization do not recommend toddler milk products.
Executive Manager of Food for Health Alliance, Jane Martin, says cow’s milk is a healthier, more affordable drink option for toddlers – costing around half the price and containing far less sugar.
“Toddler milk is an ultra-processed product created by industry and marketed as a follow-on to breastfeeding or infant formula. This marketing falsely implies toddler milks are necessary for young children’s development and growth.”
“Parents and caregivers want to do what’s best for their children. But the marketing around toddler milks, especially on social media, is often so sophisticated that it’s blurring the line between marketing spin and genuine health advice.
“With today's GST clarification from the ATO, we hope more Australian families will feel encouraged to switch from toddler milk to cow's milk as both a cheaper and healthier option."
The Australian Government has recently announced plans to better control how infant formulas are marketed in Australia. Food for Health Alliance has welcomed this action that will support children’s health but wants government to take further steps to also include regulation of toddler milk marketing.
“Toddler milks are consumed regularly by around 30 per cent of Australian toddlers and must be included in the scope of these new government regulations. The marketing around these products is just as aggressive, and often more misleading, than the promotions parents see for infant formula,”
“As the Australian Government develops new legislation around infant formula, there is a clear opportunity to ensure that toddler milks are regulated in a way that puts the health and wellbeing of children first – bringing Australia in line with World Health Organization’s standards,”
“We need to put an end to the misleading promotion of both infant formula and toddler milks and ensure Australian families are supported with clear, evidence-based information,” Ms Martin concluded.