ATO Cracks Down on Sunscreen Retailers in GST Update

Australia’s sunscreen market is growing fast as hotter summers push people to buy more sun protection each year. But on 1 December 2025, the Australian Taxation Office (ATO) released a major GST update that puts sunscreen retailers under closer watch. The ATO says too many stores are mixing up the tax rules. Some are treating cosmetic sunscreens as GST-free, even though only TGA-listed therapeutic products qualify. This mistake has led to lost revenue and uneven pricing across the market.