Wine equalisation tax (WET) is a tax imposed on wine made, imported, or sold by wholesale in Australia. It is applied at 29% of the wholesale value of wine.[1]
Background
editIn Australia, wine is taxed differently to other alcoholic beverages. While other beverages are taxed based on their alcohol content, wine is taxed at a flat 29% rate, which, on a per standard drink basis, generally makes tax on wine less than other alcoholic beverages.[2]
Rebates
editA number of rebates are available to wine producers based in Australia and New Zealand, with eligible produces originally able to claim up to $A350,000 annually. These rebates were introduced in 2004 and intended to assist small rural wineries. They were estimated to cost the Australian Federal Budget $A300 million in 2016.
Allegations of rorting
editFollowing allegations of rorting, then Assistant Treasurer Josh Frydenberg announced in 2015 the establishment of a consultation group consisting of industry representatives to find solutions to the use of "contrived schemes" designed to exploit the rebate.[3]
Reforms
editIn August 2017 reforms passed the Parliament of Australia which reduced the annual rebate available to $A350,000 and changed eligibility to require wine producers to grow at least 85% of the grapes used in their wine-making process.[4]
See also
edit
References
edit- ^ Office, Australian Taxation. "Wine equalisation tax". www.ato.gov.au. Retrieved 10 October 2017.
- ^ Dossor, Rob (May 2016). "Wine equalisation tax rebate". www.aph.gov.au. Parliament of Australia. Retrieved 9 October 2017.
- ^ Khadem, Nassim (30 October 2015). "Wine Equalisation Tax rebate: a rort?". The Sydney Morning Herald. Sydney. Retrieved 9 October 2017.
- ^ Bettles, Colin (23 August 2017). "Wine Equalisation Tax rorting set to end". Retrieved 10 October 2017.