Changes to wine equalisation tax (WET) came into full effect on 1 July 2018 and the Winemakers’ Federation of Australia (WFA) is imploring all producers in the Australian wine sector to ensure they understand and comply with the new measures.
WFA Chief Executive Tony Battaglene said: “It is important that wine producers understand the rules. The last thing a small business needs is trouble with tax, so it is important wine producers understand the rules and don’t find themselves in strife with the ATO.”
Key changes in the new WET measures include:
>> The test for whether producers are associated, for the purposes of the rebate cap, is applied at any time
during the financial year, and not at the end of the financial year. This applied from October 1, 2017.
>> The rebate cap for each financial year will be reduced from $500,000 to $350,000 from July 1, 2018.
>> Tightened eligibility criteria will apply to 2018 and later vintage wine (where more than 50% of the grapes
used to make the wine, are crushed from January 1, 2018) sold or dealt with from January 1, 2018, and for all
other wines, sold or dealt with from July 1, 2018.
There are reduced circumstances where you can claim a WET credit for:
>> 2018 and later vintage wine sold or dealt with from January 1, 2018
>> All other wines sold or dealt with from July 1, 2018.
There are changes to the information you must include when buying wine under quote for:
>> 2018 and later vintage wine sold or dealt with from January 1, 2018
>> All other wines sold or dealt with from 1 July 2018.
WFA undertook a series of roadshows in 2017, with the Australian Tax Office as guest speakers, to explain the
implications of the WET Rebate changes.
The Webinar presentation from those seminars is also available to review. Click here to take a look.
“The Australian Tax Officers provided such a professional and clear presentation of a complex subject that we
christened them ‘rock stars’,” said Battaglene. “They were engaging, transparent and answered participants
questions with empathy and understanding.”
The ATO has a dedicated email address for Australian wine producers to contact the WET team directly with any
queries regarding the new WET measures – wetnewmeasures@ato.gov.au.
“It is not often I spruik for the ATO, but they are doing an excellent job on providing information in a complex area,” Battaglene added.
Make sure you know the rules, and if unsure contact, the ATO or your accountant and make sure you retain your WET
Rebate eligibility.”
You can view the final rulings on the ATO’s legal database:
• WETR 2009/1 Wine equalisation tax: the operation of the wine equalisation tax system
• WETR 2009/2 Wine equalisation tax: the operation of the producer rebate for other than New Zealand participants
• WETR 2006/1 Wine equalisation tax: the operation of the producer rebate for producers of wine in new Zealand
