House of Representatives
Sales Tax (Customs)(Wine - Deficit Reduction) Bill 1993
Sales Tax (Excise)(Wine - Deficit Reduction) Bill 1993
Sales Tax (General)(Wine - Deficit Reduction) Bill 1993
Explanatory Memorandum
(Circulated by the authority of the Treasurer the Hon John Dawkins, M.P.)Background to the legislation
Under the existing law, the following low alcohol beverages (containing not more than 1.15% by volume of alcohol) are taxed at the concessional rate of 10%:
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- Australian-made wine and cider, and beverages similar to wine and cider (such as wine coolers); and
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- mead, perry, sake and other similar fermented beverages;
Note:
The expression "other similar fermented beverages" includes fruit wines and beverages fermented from plants such as vegetables, flowers and herbs marketed as vegetable wine etc.
Imported low alcohol wine and cider, however, is taxed at the general rate of 20%.
The 10% concessional rate does not apply to:
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- beer, spirits, liqueurs or spirituous liquors; or
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- beverages that contain beer, spirits (other than spirits for fortifying wine or other beverages), liqueurs or spirituous liquors.
Under the existing law, the following alcoholic beverages(containing more than 1.15% by volume of alcohol) are taxed at the general rate of 20%:
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- wine, cider and beverages similar to wine and cider (such as wine coolers); and
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- mead, perry, sake and other similar fermented beverages;