20th September, 2016
Let’s face it, we love wine. Red, white, sweet or dry, it’s a common table staple wherever you are.
Winemakers have until the end of this month to comment on the proposed changes to the Wine Equalisation Tax (WET) rebate.
The WET rebate was introduced in 2000, with the aim of supporting small regional wine makers.
The scheme changed in 2006, when the rebate rose from $290,000 to $500,000. The rebate is currently capped at $500,000 per claim, but the 2026-17 Federal Budget reduced the rebate allowable from 2017.
This means the cap will be lowered to $350,000 from 1 July 2017, and lowered again to $290,000 from 1 July 2018.
The Government has committed to cutting $300 million dollars’ worth of tax rebates over four years.
The new criteria would mean winemakers have to package and brand their product ready for sale, where previously winemakers were able to claim the rebate anywhere along the manufacture process of wine.
The wine industry has been the driver of changes to the WET rebate, and the rebate was creating incentives for business restructuring to take advantage of the rebate.
For more information on the WET rebate, visit the ATO website.
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This article represents general information only and should not be the only source of information you rely upon. Before making any financial and/or tax decisions, we recommend you consult with an accountant or registered BAS agent to gain the appropriate advice for your business.