THE Australian Tax Office (ATO) is cracking down on GST exemptions for sunscreen-containing cosmetics, such as moisturisers, foundation and lip balm.
The ATO says sunscreen products must have an SPF of 15 or more and an AUSTL number, and be marketed principally as sun protection to remain GST-free.
Sunscreens claimed as an income tax deduction must also meet these criteria.
Skincare companies say that adding GST will increase the cost of their products, which will be passed onto consumers, and claim it will put people off using sun protection.
However, skin cancer experts say people tend not to use enough of the cosmetic products to provide proper sun protection and it may provide a false sense of security.
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