Winemakers welcome tax changes

Winemakers now have something new to drink to. New laws to the Wine Equalisation Tax Rebate have been passed, which will reportedly ensure its integrity.

The changes will ensure that a wine producer cannot claim a rebate for wine used in manufacture unless the previous producer or supplier provides a notice that a previous producer is not entitled to the rebate on that wine.

“This is a really significant move because it takes away the opportunity that currently exists for multiple rebates to be claimed on the same quantity of wine,” said Chief Executive of the Winemakers’ Federation of Australia Paul Evans.

“This clearly was never intended when the rebate was introduced. These amendments will ensure the system works as intended.

“WFA has worked closely with the Australian Taxation Office to close these and other loopholes that we believe undermine the integrity of the WET rebate system and we are pleased that the government responded quickly.”

The rebate scheme entitles a wine producer to a rebate on their WET payments up to a maximum of $500,000 per financial year. The amendments also cover New Zealand wine, as New Zealand producers qualify for the rebate under reciprocal trade arrangements.

The changes take effect immediately.