Working out your producer rebate
The amount of producer rebate is 29% of the approved selling price. This is the price you received for the wine, less:
- Australian or New Zealand taxes
- any expenses that are unrelated to the production of the wine in New Zealand.
Expenses that are unrelated to the production of the wine in New Zealand are costs that you would not incur if you produced the wine in Australia, such as:
- agents' fees
- other costs associated with importing the wine into Australia.
The selling price of the wine can also be reduced by trade incentives you provide to customers that relate to the sale and the price of the wine. Examples of these include volume rebates, deferred credits and settlement discounts.
Using wine manufactured in Australia
From 10 December 2012, if you make wine using wine from an Australian supplier your producer rebate claim may be reduced. Your rebate amount must be reduced by any earlier producer rebate entitlement of the Australian producer of the wine.
The Australian producer (or the supplier if the producer did not supply you with the wine) can choose to notify you, in an approved form, of the amount of rebate the producer is entitled to claim.
If you are notified in the approved form that the Australian producer is not entitled to the rebate, you can claim the full amount of the rebate for your eligible dealings with wine you manufacture using the Australian producer's wine.
If you do not receive notification from the Australian supplier, you must assume that the full amount of the rebate has been claimed on the wine you used in blending or further manufacture, and subtract an amount equal to that from your rebate claim. The amount of the reduction is 29% of the GST exclusive purchase price of the wine used in the manufacturing process.
Notifying the purchaser of your rebate entitlement
If you choose to notify the purchaser in Australia of your rebate entitlement you must do this is in the approved form.
The notification must contain all of the following:
- your name, address and your company number (if applicable)
- the name and Australian business number (ABN) of the wine recipient
- a description of the wine being supplied (including the quantity and price)
- the date that the wine was supplied
- sufficient information to identify the relevant tax invoice, for example the tax invoice number.
It must also contain notification that the producer of the wine supplied is either:
- entitled to a producer rebate for the wine (and include the amount of the rebate the producer is entitled to)
- not entitled to claim a producer rebate for the wine.
You can provide notification in any of the following ways:
- information added to a tax invoice
- an email
- a letter.
Wine equalisation producer rebate calculation sheet
The calculation sheet must be submitted with your Application for payment of wine equalisation tax (WET) rebate by an approved New Zealand participant form.
The calculation sheet must be used 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 will need to be completed for each financial year.