The Government has released exposure draft legislation and associated explanatory material that would amend the A New Tax System (Wine Equalisation Tax) Act 1999 to give effect to the reforms to the wine equalisation tax (WET) rebate announced on 2 December 2016.
The purpose of consultation is to seek industry views on the implementation details of the changes to the WET rebate as set out in the exposure draft legislation and explanatory material.
From 1 July 2018, eligible producers will be required to own at least 85 per cent of the grapes used to make the wine throughout the winemaking process. The rebate will be limited to wine branded with a registered trademark, and packaged in a container not exceeding five litres for domestic retail sale. In addition, wine producers will need to better link their rebate claims to the wine tax being paid. The WET rebate cap will also be reduced from $500,000 to $350,000 from 1 July 2018.