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  • ATO action to reduce the gap

    Incorrect reporting and payment of wine equalisation tax (WET) is due to:

    • simple mistakes or omissions such as calculation errors
    • lack of awareness of WET obligations due to complexity of the system
    • deliberate non-compliance, including 
      • claiming WET producer rebate when not entitled
      • claiming WET producer rebate on exported wine
      • incorrect quoting and inadequate quotation documentation
      • overvaluing wine for claiming the WET producer rebate
      • not accounting for WET on wine for own use
      • misclassification of goods to take advantage of lower tax rate.
       

    Our goal is to improve compliance and have the correct amount of WET reported. Our compliance strategies focus on:

    • providing education, support and guidance that helps registrants report the correct amount of WET payable and refundable
    • ensuring wine products are classified correctly
    • cross-checking our data and WET payable to identify inconsistencies that may indicate non-compliance
    • identification and acting on WET registrations used to claim false refunds
    • focussing on incorrect claiming of WET credits on wine exports.
      Last modified: 31 Oct 2022QC 57167