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  • Wine equalisation tax gap

    This information is about estimating the wine equalisation tax (WET) gap. This gap forms a part of our overall tax performance program.

    WET is paid on wine and selected products (such as cider, perry, mead and sake) consumed in Australia, and applies either:

    • at the last wholesale sale to a retailer
    • to direct sales from wine producers to consumers.

    The WET system includes a producer rebate scheme which entitles the producers of wine and selected products to a rebate of 29 per cent of taxable value of domestic sales up to $350,000 per financial year. This effectively makes the first $1.2 million of domestic wholesale sales are exempt from WET.

    Some legislative changes took effect from 1 July 2018:

    • the WET producer rebate cap was reduced from $500,000 to $350,000 for transactions in wine made from 1 July 2018
    • circumstances when a WET credit can be claimed were reduced
    • additional information must be reported when buying wine under quote.

    For the 2018–19 year we estimate a net WET gap of 2.9% or $29 million. Therefore, approximately 97% of the total theoretical tax liability was paid in 2018–19.

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      Last modified: 19 Oct 2021QC 57167