If you have chosen to use the calculation sheet, it should be submitted with your Application for payment of wine equalisation tax (WET) rebate form.
You can use the calculation sheet to calculate your producer rebate where the selling price of your wine and expenses unrelated to the production of the wine in New Zealand are expressed in New Zealand currency.
If you are claiming rebates for more than one financial year a calculation sheet should be completed for each financial year.
Next steps
- Wine equalisation producer rebate calculation sheet for New Zealand wine producers (PDF 620KB)This link will download a file
- Converting foreign currency
Converting foreign currency
If the figures you use to calculate the producer rebate are not in Australian dollars, you must convert the figures to Australian currency before making your claim.
There are three methods for converting currency depending if you're converting from New Zealand or foreign currency. Whatever method you choose, you must apply the same method consistently during a financial year.
You have two methods for converting foreign currency to Australian currency:
If you are converting New Zealand currency to Australian currency, there's a third method:
Method 1 – RBA rate
Method 1 uses the Reserve Bank of Australia (RBA) rate. The RBA rate is the exchange rate expressed as a unit of foreign currency per Australian dollar as calculated by the Reserve Bank of Australia.
The following formula may be used for the RBA rate:
Value of component in NZ$ × (1 ÷ the RBA rate on conversion day)
The conversion day is the earlier of:
- the day any payment for the supply of wine is received by the New Zealand participant
- the invoice date.
Method 2 – agreed rate
This uses the exchange rate that you agreed to with the Australian purchaser for sales of wine. In this case, it is being used to convert New Zealand currency; however, it can be used for other foreign currencies.
The following formula may be used for the agreed rate:
Value of component in NZ$ × (1 ÷ the agreed rate on conversion day)
Method 3 – average RBNZ rate
Method 3 uses the average Reserve Bank of New Zealand (RBNZ) rate. The average RBNZ rate is the exchange rate expressed as a unit of Australian currency per New Zealand dollar for the Australian financial year in which the conversion day occurs.
This method is only available if you're converting New Zealand currency to Australian currency. If you're converting a different currency, you need to use one of the other two methods.
The following formula may be used for the average RBNZ rate:
Value of component in NZ$ × the average RBNZ rate for the Australian financial year of the conversion day
Australian financial year |
Average RBNZ exchange rate |
|---|---|
2022-23 |
NZ$1 = A$0.9153 |
2021-22 |
NZ$1 = A$0.9379 |
2020-21 |
NZ$1 = A$0.9309 |
2019-20 |
NZ$1 = A$0.9487 |
2018-19 |
NZ$1 = A$0.9380 |
2017-18 |
NZ$1 = A$0.9220 |
2016–17 |
NZ$1 = A$0.9448 |
Example: Calculation of approved selling price
Kiwi Wines Pty Ltd is a wine producer manufacturing wine in New Zealand. Several shipments of wine are sold to an Australian importer during the 2019–20 financial year.
The invoice prices, expressed in NZD, include expenses for freight and insurance to transport the wine to the New Zealand shipping dock.
The importer meets the shipping costs to Australia.
Kiwi Wines invoices the Australian importer for the wine.
Invoice date |
Invoice amount (NZ$) including shipping costs |
Transport costs to shipping dock |
Invoice amount (NZ$) excluding transport costs |
Date of payment |
|---|---|---|---|---|
19 Jul 2019 |
$26,500 |
$500 |
$26,000 |
21 Aug 2019 |
13 Sep 2019 |
$69,000 |
$1,000 |
$68,000 |
21 Oct 2019 |
04 Dec 2019 |
$126,000 |
$2,000 |
$124,000 |
21 Jan 2020 |
06 Apr 2020 |
$22,500 |
$500 |
$22,000 |
21 May 2020 |
There are three options for converting the invoice amounts to Australian dollars:
Method 1 – the RBA rate
The invoice date for each sale must be used as the conversion day as the invoice date occurs before the date of payment.
Invoice date |
Conversion rate |
|---|---|
19 Jul 2019 |
1.0430 |
13 Sep 2019 |
1.0724 |
05 Dec 2019 |
1.0464 |
06 Apr 2020 |
1.0239 |
Invoice date |
Invoice amount (NZ$) excluding transport costs |
Conversion rate |
Invoice amount (A$) |
|---|---|---|---|
19 Jul 2019 |
$26,000 |
1.0430 |
$24,928.09 |
13 Sep 2019 |
$68,000 |
1.0724 |
$63,409.18 |
05 Dec 2019 |
$124,000 |
1.0464 |
$118,501.53 |
06 Apr 2020 |
$22,000 |
1.0239 |
$21,486.47 |
Total |
$240,000 |
n/a |
$228,325.25 |
Using Method 1, the resulting total amount in Australian dollars is $228,325.25.
Method 2 – the agreed rate
All sales were made under the same agreement. For the period of the agreement in which the sales were made, the agreed exchange rate for a unit of New Zealand currency per Australian dollar was 1.0703.
Invoice date |
Invoice amount (NZ$) excluding transport costs |
Conversion rate |
Invoice amount (A$) |
|---|---|---|---|
19 Jul 2019 |
$26,000 |
1.0703 |
$24,292.25 |
13 Sep 2019 |
$68,000 |
1.0703 |
$63,533.59 |
05 Dec 2019 |
$124,000 |
1.0703 |
$115,855.37 |
06 Apr 2020 |
$22,000 |
1.0703 |
$20,554.98 |
Total |
$240,000 |
n/a |
$224,236.19 |
Using Method 2, the resulting total amount in Australian dollars is $224,263.19.
Method 3 – the average RBNZ rate
The average RBNZ rate for a unit of Australian currency per New Zealand dollar for the 2018–19 financial year is 0.9487
Invoice date |
Invoice amount (NZ$) excluding transport costs |
Conversion rate |
Invoice amount (A$) |
|---|---|---|---|
19 Jul 2019 |
$26,000 |
0.9487 |
$24,666.20 |
13 Sep 2019 |
$68,000 |
0.9487 |
$64.511.60 |
05 Dec 2019 |
$124,000 |
0.9487 |
$117.638.80 |
06 Apr 2020 |
$22,000 |
0.9487 |
$20,871.40 |
Total |
$240,000 |
0.9487 |
$227,688.00 |
Using Method 3, the resulting total invoice amount in Australian dollars is $227,688.00
Option chosen:
Kiwi Wines chooses to use option 1 – the RBA rate– to maximise their rebate claim.
End of exampleConverting earlier rebate amounts
You are not entitled to claim the producer rebate for dealings with wine until after the end of the financial year in which the dealing was made and WET was paid. However, for the purposes of notifying a purchaser of your rebate entitlement you are deemed to be entitled to the producer rebate before this time.
You must use Method 1 to determine your approved selling price in Australian currency if:
- you notify a purchaser of your rebate entitlement before being able to make your rebate claim
- any component of the approved selling price is not expressed in Australian currency.
The RBA rate you must use is the rate on the earlier of the date you either:
- received any consideration from the purchaser for the wine
- issued the invoice to the purchaser.