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Australia Passes Wine Equalisation Tax Rebate Bill

by Mary Swire, Tax-news.com, Hong Kong

17 August 2017


The Australian Government has passed legislation that will tighten the eligibility criteria for the Wine Equalisation Tax (WET) rebate and prevent the rebate being claimed multiple times on the same wine.

The WET is a 29 percent tax on the wholesale value of wine. It is payable by those who make or import wine or sell wine as a wholesaler, but only if they are registered or required to be registered for goods and services tax (GST). Wine producers may be entitled to a rebate of the WET they paid on a wine dealing, or of the amount of WET they would have paid had the buyer not provided a quote for the deal.

Under legislation passed on August 17, wine producers will be required to own at least 85 percent of the grapes used to make the wine throughout the winemaking process. The rebate cap will be reduced from EUR500,000 (USD397,233) to EUR350,000.

These measures will enter into force on July 1, 2018. Transitional arrangements will apply to help the industry adjust to the changes.

Revenue Minister Kelly O'Dwyer said: "This will stop the rebate being claimed multiple times on the same wine through the production chain, where it is subject to blending or further manufacture and then on-sold."

TAGS: tax | tax incentives | goods and services tax (GST) | Australia | tax thresholds | tax credits | food | legislation | tax breaks | tax reform | services

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I used to share the articles on LinkedIn but recently the share buttons have been removed above the articles. Any specific reason for that?

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