EXC 2006/2


Australian Government

This legislative instrument has been repealed by WET 2016/34 - Wine Equalisation Tax New Zealand Producer Rebate Foreign Exchange Conversion Determination (No. 35) 2016 (1 March 2016).

A New Tax System (Wine Equalisation Tax) Act 1999

Under subsection 19-15(1B) of the A New Tax System (Wine Equalisation Tax) Act 1999, I make the following determination:

Citation

1. This determination may be cited as the Wine Equalisation Tax New Zealand Producer Rebate Foreign Exchange Conversion Determination 2006.

Commencement

2. This determination commences on 1 July 2006 or the commencement of Schedule 4 to the Tax Laws Amendment (2005 Measures No. 4) Act 2005, whichever is the later.

Application of determination

3. This determination applies to approved New Zealand participants that are required to calculate the approved selling price of their wine in Australian currency, when one or more components of the approved selling price are expressed in a currency other than Australian currency.

Note: For approved New Zealand participants, the amount of a WET producer rebate is calculated using the approved selling price of their wine.

Definitions

4. (1) The following terms are defined for the purpose of this determination:

·
RBA rate means the foreign exchange rate calculated by the Reserve Bank of Australia (RBA) when the New Zealand participant works out the value of the component used to determine the approved selling price on a conversion day:

(a)
that is a RBA business day, then the RBA rate is the unit of foreign currency per $A calculated by the RBA at 4:00pm Australian Eastern time on that RBA business day, and
(b)
that is not a RBA business day, then the RBA rate is the unit of foreign currency per $A calculated by the RBA at 4:00pm Australian Eastern time of the previous RBA business day.

·
New Zealand participant's agreed rate means a foreign exchange rate agreed to between the New Zealand participant and the recipient of the wine. The agreed rate only applies for sales made under the agreement and for the period of the agreement applying to the Australian financial year in which the producer rebate is being claimed.
·
conversion day is the date you use to convert foreign currency into Australian currency for wine equalisation tax purposes, and is the earlier of:

(a)
the day on which any of the consideration is received by the New Zealand participant for the supply of the wine (the receipt date); or
(b)
the invoice date.

·
RBA business day means a day that the head office of the RBA is open for business.
·
Reserve Bank of Australia means the body corporate continued in existence under the Reserve Bank Act 1959.
·
average monthly RBNZ rate means the average of the RBNZ rate for a particular month calculated by the Reserve Bank of New Zealand (RBNZ) at 11:10am New Zealand time on the last RBNZ business day of that month.
·
RBNZ rate means the foreign exchange rate calculated by the RBNZ that is the unit of Australian currency per $NZ calculated by the RBNZ at 11:10am New Zealand time on that RBNZ business day.
·
RBNZ business day means a day that the head office of the RBNZ is open for business.
·
Reserve Bank of New Zealand is the body corporate continued in existence under the Reserve Bank of New Zealand Act.

(2) Other terms in this determination have the same meaning as in the A New Tax System (Wine Equalisation Tax) Act 1999.

Manner in which the conversion to Australian currency may be made

5. Option 1 - conversion for components expressed in any foreign currency

In working out the value of the component used to determine the approved selling price, you convert the value of the component expressed in a foreign currency (including New Zealand currency) on a conversion day in accordance with the following formula:

Value of component expressed in a foreign currency * [1/the New Zealand participant's particular exchange rate on the conversion day]

where,

·
the New Zealand participant's particular exchange rate is the RBA rate or the New Zealand participant's agreed rate , whichever is applicable; and
·
the conversion day is the date that the foreign currency is converted into Australian currency for wine equalisation tax purposes.

Option 2 - additional option for components expressed in New Zealand currency

Where the value of the component used to determine the approved selling price is expressed in New Zealand currency, then in working out the value of that component you have the option of converting the value on a conversion day in accordance with the following formula:

Value of component expressed in New Zealand currency ($NZ) * average yearly RBNZ rate

where,

·
average yearly RBNZ rate is the total of the average monthly RBNZ rates for each month in the Australian financial year in which the conversion day occurs, divided by twelve; and
·
the conversion day is the date that the New Zealand currency is converted into Australian currency for wine equalisation tax purposes.

6. You must use your particular exchange rate and conversion option consistently.



Dated this 23rd day of March 2006

Stephen Neil Olesen
Deputy Commissioner and Delegate of the Commissioner


Registration Number: F2006L00923

Registration Date: 24 March 2006

Related Explanatory Statements:

EXC 2006/2 - Explanatory statement