The Australian Parliament recently amended the GST Act of 1999, to add an additional category of drugs and medicine preparations, which are now included in the list of GST-free goods seen in section 38-50(6)(b) of the Australian GST Act. The new section, 38-50(6)(ba), states that a supply of a drug or medicinal preparation is GST-free, if that supply is authorized by the rules stated in sub-section 19(7A) of the Therapeutic Goods Act of 1989.
Sub-section 19(7A) of the Therapeutic Goods Act includes, drugs or medicine preparations made by “any health practitioner who is included in a specified class of health practitioners to supply: (a) specified therapeutic goods for use in the treatment of humans; or (b) a specified class of such goods”. Additional information, as well as the language of sub-section 19(7A) of the Therapeutic Goods Act can be seen here.
About the Author
Katie Smethurst is a Junior Regulatory Counsel at Sovos. Within Sovos’ Regulatory Counsel function, Katie focuses primarily on international and U.S. based indirect tax research and analysis. Katie is a member of the Massachusetts and New Hampshire Bars, earned her B.A. from Roger Williams University and earned her J.D. from Suffolk University Law School.More Content by Kaitlyn Smethurst