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Overview

Work out what WET is and when it is paid.

Last updated 29 October 2023

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

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

The WET system includes a producer rebate scheme. This entitles producers of wine and selected products to a rebate of 29% of taxable value of domestic sales, with the maximum rebate amount capped at $350,000 per financial year. This effectively makes the first $1.2 million of domestic wholesale sales exempt from WET.

Some legislative changes took effect from 1 July 2018, including:

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

This gap forms a part of our overall tax performance program. Find out more about the concept of tax gaps and the latest gaps available.

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