Wine equalisation tax (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
- 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 makes the first $1.2 million of domestic wholesale sales exempt from WET. The producer rebate increased to $400,000 from 1 July 2026, but this new amount does not apply to the 2023–24 WET gap estimate.
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 at Australian tax gaps – overview.