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ATO action to reduce the gap

How we support our clients to meet their compliance obligations.

Last updated 29 October 2023

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.