What is WET?
If you make wine, import wine into Australia or sell it by wholesale, you'll generally have to account for wine equalisation tax (WET).
WET is a tax of 29% of the wholesale value of wine. It is generally only payable if you're registered or required to be registered for GST.
WET is designed to be paid on the last wholesale sale of wine, which is usually between the wholesaler and retailer. WET may apply in other circumstances where there hasn't been a wholesale sale, such as cellar door sales or tastings.
WET is also payable on imports of wine, whether or not you are registered for GST.
Changes to WET
From 1 October 2017, the test for whether wine producers are associated for the purposes of the rebate cap is applied at any time during the financial year.
From 1 July 2018:
- the producer rebate cap for each financial year is $350,000 (reduced from $500,000)
- tightened eligibility criteria for the producer rebate apply to all wines
- there are reduced circumstances where you can claim a WET credit
- you must include new information when buying wine under quote.
Some of these changes also applied from 1 January 2018 for 2018 vintage wines.
From 1 July 2026 the producer rebate cap for each financial year increased to $400,000.
If these changes mean that you no longer pay WET or can no longer claim WET credits, find out how to cancel your registration.