Wine Equalisation Tax Rebate to change again
The Turnbull Government has announced further changes to the Wine Equalisation Tax (WET) Rebate to benefit grape growing, winemakers and associated tourism in Australia.
The WET Rebate was initially put in place to support small wine producers, particularly those in rural and regional Australia. However, it has been taken advantage of with some growers abusing the system to maximise their Rebate, resulting in the excessive production of wine grapes and low value wine.
The government has agreed to overhaul the Rebate in light of this misuse and exploitation. It will no longer be available to unlabeled producers, who are blamed for the influx of cheap bulk wine.
The new changes will be implemented to protect the integrity of the WET Rebate scheme and to benefit the small business owners and producers who need it the most.
The key changes include:
- Eligible producers must own 85% of the grapes at the crusher used to make the wine, and maintain ownership throughout the wine making process
- The Rebate is limited to branded packaged wine, in a container not exceeding 5L and branded with a registered trademark for domestic retail sale
- The Rebate claims must be better linked to the WET being paid
- The Rebate cap will be reduced from $500,000 to $350,000 (which is a year later, and a higher cap, than announced in the 2016 Budget).
The new eligibility criteria will apply from 1 July 2018.
If you have any questions regarding the changes feel free to give Jacob Lea a call on 03 5443 0344 or find more information at: Fact Sheet – Wine Equalisation Tax Rebate Changes