WET system in Australia
WET is a tax on wine consumed in Australia. It is based on the value of the wine and generally applies to the last wholesale sale (usually between the wholesaler and the retailer) although it may apply in other circumstances.
There were around 5,600 taxpayers registered for WET in 2013–14 who paid $766 million in net WET collections.
WET applies to a number of alcoholic beverages that contain more than 1.15% by volume of ethyl alcohol. Generally, when a business sells wine, they need to include WET in the price.
However, there are some instances where a business does not need to charge WET, including where the purchaser has quoted an ABN, the goods are to be exported, or the sale of the wine is a retail sale and WET has already been paid. For imported wine, eligible businesses can defer the WET on importation by providing an ABN quotation to the Australian Border Force.
WET is primarily calculated at the wholesale/distributor sales level by applying the 29% WET rate to the sale price of the wine. For retail sales and own use, business can use either the ‘half retail price’ method or the ‘average wholesale price’ method to calculate WET.
The wine producer rebate entitles wine producers to a rebate of up to $500,000 each financial year. We have not estimated a WET producer rebate gap.