A New Tax System (Wine Equalisation Tax) Act 1999

Part 4 - Wine tax credits  

Division 19 - Producer rebates  

19-17   Earlier producer rebates  

(1)  
Despite section 19-15, if any of the wine was *manufactured using other wine, the amount of the *producer rebates to which you would be entitled under that section is reduced by the sum of the amounts of any *earlier producer rebates relating to the wine.

(2)  
An earlier producer rebate relating to wine is:


(a) if you are notified under subsection (3) of the amount of the producer's *producer rebate for other wine that was used to *manufacture the wine - so much of that producer rebate as relates to the amount of the other wine so used; or


(b) if you are not notified under subsection (3) in relation to other wine that was used to *manufacture the wine - an amount equal to what would have been so much of the producer's producer rebate for the other wine as relates to the amount of the other wine so used if:


(i) the producer had been entitled to a producer rebate for a *wholesale sale of the other wine to you; and

(ii) subsections 19-15(2) and (3) and this section did not affect the amount of that producer rebate.

There is no earlier producer rebate in relation to other wine that was used to manufacture the wine if you are notified under subsection (3) that the producer of the other wine is not entitled to a producer rebate for the other wine.

Example:

Winemaker A makes a wholesale sale of 100 litres of wine that it has manufactured to Winemaker B for $200. Winemaker B uses that wine to manufacture 100 litres of wine and then sells 30 litres to a distributor for $100.

Winemaker A has a rebate of $58 (assuming that it is not reduced because of an earlier producer rebate, and that Winemaker A has not already had the maximum rebate).

Winemaker B's rebate for the $100 sale of 30 litres to the distributor would be $29. However, Winemaker A's earlier producer rebate reduces Winemaker B's rebate for the 30 litres by $17.40 (30/100 × $58). Winemaker B's rebate is therefore $11.60. (It does not matter whether Winemaker A notifies Winemaker B of the earlier producer rebate.)

If Winemaker A had not been entitled to any producer rebate, and Winemaker B had been notified accordingly, Winemaker B's rebate for the $100 sale would have been $29.

(3)  
The *producer of the other wine, or (if the producer did not *supply the other wine to you) the supplier of the other wine, may notify you, in the *approved form, that:


(a) the producer is entitled to a *producer rebate of a specified amount for the other wine; or


(b) the producer is not entitled to a producer rebate for the other wine.

(4)  
If the *supply of other wine includes wine of 2 or more types of wine, subsection (3) applies as if there were separate supplies for each type of wine.

(5)  
For the purposes of subsection (2), if the only reason why an entity is not, or would not be, entitled to a *producer rebate for other wine is that paragraph 19-5(2)(c) has not yet been complied with:


(a) the entity is taken to be entitled to the rebate for the other wine; and


(b) the amount of that rebate is taken to be an amount equal to 29% of the approved selling price for the other wine.




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