Supplementary Explanatory MemorandumAmendments to be moved on behalf of the Government (Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
Chapter 5 - Wine equalisation tax
5.1 This Chapter explains the amendments to the WET Act to allow refunds of WET to persons who are taking wine with them out of Australia as accompanied baggage.
5.2 Amendment 92 inserts Division 25 which will enable the establishment of a WET refund system similar to that available for GST on goods being taken out of Australia as accompanied baggage.
5.3 The effect of the new provision will be that if a person takes wine overseas as accompanied baggage the person may be entitled to a refund of the WET that was included in the price they paid for the wine.
5.4 Section 25-5 contains details of the requirements to be met before a refund can be paid:
- the person must acquire wine on which they have borne WET and which they are exporting as accompanied baggage. Accompanied baggage are goods which a person takes with them on the aircraft or ship in which they are departing Australia;
- the acquisition must be of a kind specified in the regulations; and
- the person must leave Australia and export the wine from Australia as accompanied baggage, in the circumstances specified in the regulations.
5.5 If the person meets the above requirements, the Commissioner must pay the person a refund equal to the amount of the WET the person bore on the wine or some proportion of that amount specified in the regulations.
5.6 The law allows for regulations setting out the method to be used in calculating the amount of WET to be refunded.