Part 4
-
Wine tax credits
Division 19
-
Producer rebates
History
Div 19 substituted for Div 19 by No 129 of 2004, s 3 and Sch 1 item 1, applicable to dealings in wine made on or after 1 October 2004.
Act No 129 of 2004, s 3 and Sch 1 contained the following transitional provisions:
Transitional provisions
(1) The amount of producer rebate for a producer of rebatable wine under the
A New Tax System (Wine Equalisation Tax) Act 1999
(as in force immediately before the commencement of this Schedule) for dealings in wine made on or after 1 July 2004 and before 1 October 2004 is the amount worked out under section 19-10 of that Act (as so in force) as if 30 September 2004 were the end of a financial year.
(2) The maximum amount of producer rebate for a producer, or a group of associated producers, of rebatable wine under the
A New Tax System (Wine Equalisation Tax) Act 1999
(as in force after the commencement of this Schedule) for the 2004-05 financial year is $217,500.
Div 19 formerly read:
Division 19
-
Producer rebates
19-1 What this Division is about
Wine producers are entitled to a rebate for certain retail sales and AOUs of wine. The rebate tapers off when these sales and AOUs exceed a particular value. The rebate is provided in the form of a wine tax credit.
Note:
Credit ground CR9 is producer rebates.
History
S 19-1 inserted by No 92 of 2000, s 3 and Sch 9A item 3, effective 1 July 2000.
19-5 Entitlement to producer rebates
Retail sales
(1)
You are entitled to a *
producer rebate
for *
rebatable wine
in respect of a *
financial year
if:
(a)
you are the *
producer
of the wine; and
(b)
you are liable to wine tax for a *
retail sale
of the wine during the financial year; and
(c)
the sale is from premises to which your *
producer
'
s licence
relates; and
(d)
the sale does not contravene the *
State law
or *
Territory law
under which the licence was issued, or any conditions to which the licence is subject.
(2)
A sale of wine by mail order or on the Internet is taken to be a sale from particular premises for the purposes of paragraph (1)(c) if the wine is sold under the *
producer
'
s licence
to which those premises relate.
AOUs
(3)
You are also entitled to a *
producer rebate
for *
rebatable wine
in respect of a *
financial year
if:
(a)
you are the *
producer
of the wine; and
(b)
you are liable to wine tax for an *
AOU
of the wine during the financial year.
Exceptions
(4)
However, you are not entitled to the rebate for the wine if:
(a)
in the case of a *
retail sale
-
you sell the wine in the course of providing, to the purchaser of the wine, other *
food
that is for consumption on the *
premises
from which it is supplied; or
(b)
in the case of a retail sale
-
the sale is by mail order or on the Internet and a commission is payable to a third party for the sale, or a third party deducts an amount as commission from the proceeds of the sale; or
(c)
in any case
-
in the *
financial year
in which the sale or *
AOU
occurs, your *
annual rebatable turnover
for the *
producer
'
s licence
under which the sale or AOU took place is more than $580,000.
History
S 19-5 inserted by No 92 of 2000, s 3 and Sch 9A item 3, effective 1 July 2000.
19-10 Amount of producer rebates
(1)
If the *
annual rebatable turnover
of a *
producer
of *
rebatable wine
for a particular *
producer
'
s licence
in a *
financial year
is $300,000 or less, the amount of the *
producer rebates
to which you are entitled in respect of that licence for that financial year is 14% of that turnover.
(2)
If the *
annual rebatable turnover
of a *
producer
of *
rebatable wine
for a particular *
producer
'
s licence
in a *
financial year
is more than $300,000, the amount of the *
producer rebates
to which you are entitled in respect of that licence for that financial year is:
$42,000
−
((That turnover
−
$300,000)
×
15%)
History
S 19-10 inserted by No 92 of 2000, s 3 and Sch 9A item 3, effective 1 July 2000.
19-15 Estimating amounts of producer rebates for each tax period
(1)
The Commissioner may determine in writing how a *
producer
of *
rebatable wine
may work out estimates of amounts of *
producer rebates
that the producer may claim for the producer
'
s *
tax periods
during a *
financial year
(other than the last tax period of a financial year).
(2)
An amount worked out in accordance with the determination, for one of the *
tax periods
applying to you, is treated as an amount of a *
wine tax credit
:
(a)
to which you are entitled; and
(b)
that arises during that tax period (even though under
section 17-5
it would arise at a later time).
(3)
The amount of the *
producer rebate
to which you are entitled in respect of the *
financial year
is taken to be reduced by the sum of the amounts worked out under subsection (2) that you claim for *
tax periods
during the financial year.
(4)
However, if the sum of the amounts worked out under subsection (2) that you claim for *
tax periods
during the *
financial year
exceeds the amount of the *
producer rebate
to which you are entitled in respect of the financial year:
(a)
you are liable to pay an amount equal to that excess; and
(b)
the amount is to be treated as if it were wine tax payable by you at the end of the financial year, and, for the purposes of
Part 5
, were attributable to the last tax period of the financial year.
History
S 19-15 inserted by No 92 of 2000, s 3 and Sch 9A item 3, effective 1 July 2000.
19-20 Annual rebatable turnover
The *
annual rebatable turnover
of a *
producer
of *
rebatable wine
for a particular *
producer
'
s licence
in a *
financial year
is the sum of:
(a)
the *
notional wholesale selling prices
of all *
retail sales
of rebatable wine the producer makes in that financial year that are sales:
(i)
made under the licence; and
(ii)
to which
subsection 19-5(1)
applies; and
(b)
the notional wholesale selling prices of all *
AOUs
of rebatable wine the producer makes in that financial year that are AOUs:
(i)
made under the licence; and
(ii)
to which
subsection 19-5(3)
applies.
History
S 19-20 inserted by No 92 of 2000, s 3 and Sch 9A item 3, effective 1 July 2000.
Div 19 inserted by No 92 of 2000, s 3 and Sch 9A item 3, effective 1 July 2000.
19-5
Entitlement to producer rebates
(1)
You are entitled to a *producer rebate for *rebatable wine for a *financial year if:
(a)
you are the *producer of the wine; and
(b)
either:
(i)
you are liable to wine tax for an *assessable dealing in the wine during the financial year; or
(ii)
you would have been liable to wine tax for an assessable dealing in the wine during the financial year had the purchaser not *quoted for the sale at or before the time of the sale; and
(c)
if subparagraph (b)(ii) applies
-
the purchaser
'
s *quote did not state an intention of dealing with the wine in a way described in subparagraph
5-50(1)(b)(i)
or (ii); and
(d)
you satisfy the requirements in subsection (3) (ownership of source product) for at least 85% of the wine (measured by volume); and
(e)
the wine is in a *container that meets the requirements in subsection (7) at the time of the assessable dealing.
(2)
You are entitled to a *producer rebate for *rebatable wine for a *financial year if:
(a)
you are approved as a *New Zealand participant; and
(b)
you are the *producer of the wine; and
(c)
the wine was produced in *New Zealand and exported to the indirect tax zone; and
(d)
you, or another entity, paid wine tax for an *assessable dealing in the wine during the financial year; and
(e)
you satisfy the requirements in subsection (3) (ownership of source product) for at least 85% of the wine (measured by volume); and
(f)
the wine is in a *container that meets the requirements in subsection (7) at the time of the assessable dealing.
(3)
You satisfy the requirements in this subsection for wine if you own the *source product for the wine throughout the period:
(a)
starting:
(i)
if that source product is covered by paragraph (4)(a), (b), (c) or (d)
-
immediately before the crushing of that source product; or
(ii)
if that source product is covered by paragraph (4)(e) or (f)
-
immediately before the initial fermentation of that source product; and
(b)
ending when the wine is placed in a *container that meets the requirements in subsection (7).
(4)
The
source product
for wine is:
(a)
for *grape wine
-
the fresh grapes from which the grape wine is produced; or
(b)
for *grape wine products
-
the fresh grapes from which the grape wine products are produced; or
(c)
for *fruit or vegetable wine
-
the fruit or vegetables from which the fruit or vegetable wine is produced; or
(d)
for *cider or perry
-
the apples or pears from which the cider or perry is produced; or
(e)
for *mead
-
the honey from which the mead is produced; or
(f)
for *sake
-
the rice from which the sake is produced.
(5)
You are taken to have satisfied the requirements in subsection (3) for wine, to the extent that the wine is composed of any of the following substances that you have caused to be added to the wine:
(a)
grape spirit;
(b)
brandy;
(c)
alcohol used in preparing vegetable extracts (including spices, herbs and grasses);
(d)
ethyl alcohol from a source as specified in the regulations for the purposes of paragraph
31-4(b)
,
31-5(b)
,
31-6(b)
or
31-7(b)
;
(e)
water;
(f)
if no more than 10% of the wine (measured by volume) is grape juice concentrate that you have caused to be added to the wine
-
that grape juice concentrate;
(g)
if no more than 1% of the wine (measured by volume) is another substance that you have caused to be added to the wine
-
that other substance.
(6)
For the purposes of paragraph (5)(g), treat substances that are similar to each other as being the same substance.
(7)
A *container in which wine is placed meets the requirements in this subsection if:
(a)
any of the following requirements are satisfied:
(i)
the container is suitable for *retail sale and the volume of the container does not exceed 5 litres;
(ii)
if the wine is *cider or perry
-
the container is suitable for retail sale of portions of the contents of the container and the volume of the container does not exceed 51 litres; and
(b)
the container in which the wine is placed at the time of the *assessable dealing is branded by a trade mark applied to the container; and
(c)
the trade mark identifies, or can readily be associated with, the *producer of the wine; and
(d)
the trade mark is owned by:
(i)
the producer of the wine; or
(ii)
an entity that is an *associated producer of the producer of the wine for the *financial year in which the assessable dealing occurs because it satisfies the requirement in paragraph
19-20(1)(a)
(on the assumption that it were a producer); and
(e)
the trade mark is:
(i)
a trade mark (within the meaning of the
Trade Marks Act 1995
); or
(ii)
if paragraphs (2)(a), (b) and (c) apply
-
a trade mark (within the meaning of the
Trade Marks Act 2002
of New Zealand); and
(f)
the trade mark satisfies any of the following requirements:
(i)
the trade mark is a registered trade mark (within the meaning of the
Trade Marks Act 1995
);
(ii)
if paragraphs (2)(a), (b) and (c) apply
-
the trade mark is a registered trade mark (within the meaning of the
Trade Marks Act 2002
of New Zealand);
(iii)
an application for registration of the trade mark under the
Trade Marks Act 1995
satisfies the requirements under that Act for the application to be pending (within the meaning of that Act);
(iv)
if paragraphs (2)(a), (b) and (c) apply
-
an application for registration of the trade mark under the
Trade Marks Act 2002
of New Zealand satisfies requirements under that Act that are equivalent to the requirements mentioned in subparagraph (iii);
(v)
the trade mark has been used by the producer of the wine throughout the period beginning on 1 July 2015 and ending at the time of the assessable dealing.
History
S 19-5 substituted by No 94 of 2017, s 3 and Sch 1 item 8, effective 1 October 2017. No 94 of 2017, s 3 and Sch 1 Div 2 contains the following application and transitional provisions:
Division 2
-
Application and transitional provisions
19 Application
(1)
The amendments made apply to assessable dealings in wine in the 2018-19 financial year and later financial years.
(2)
The amendments made also apply to assessable dealings in wine if:
(a)
in a case where the source product for the wine is covered by paragraph
19-5(4)(a)
, (b), (c) or (d) of the
A New Tax System (Wine Equalisation Tax) Act 1999
-
the crushing of the source product for more than 50% of the wine (measured by volume) occurred on or after 1 January 2018; or
(b)
in a case where the source product for the wine is covered by paragraph
19-5(4)(e)
or (f) of that Act
-
the initial fermentation of the source product for more than 50% of the wine (measured by volume) started on or after 1 January 2018.
20 Transitional
-
85% ownership requirement taken to be satisfied for certain assessable dealings
(1)
Subitems (4) and (5) apply in relation to an assessable dealing in wine if:
(a)
in a case where the source product for the wine is covered by paragraph
19-5(4)(a)
, (b), (c) or (d) of that Act
-
the crushing of the source product for more than 50% of the wine (measured by volume) occurred before 1 January 2018; and
(b)
in a case where the source product for the wine is covered by paragraph
19-5(4)(e)
or (f) of that Act
-
the initial fermentation of the source product for more than 50% of the wine (measured by volume) started before 1 January 2018; and
(c)
the producer of the wine owned the wine throughout the period:
(i)
starting immediately before 1 January 2018; and
(ii)
ending at the time of the assessable dealing; and
(d)
the assessable dealing is covered by subitem (2) or (3).
(2)
The assessable dealing is covered by this subitem if:
(a)
the time of the dealing is before 1 July 2023; and
(b)
the wine is in a container at the time of the dealing, and any of the following requirements are satisfied:
(i)
that container clearly displays the vintage date of the wine;
(ii)
the wine had been placed in that container before 1 July 2018.
(3)
The assessable dealing is covered by this subitem if:
(a)
the time of the dealing is before 1 July 2025; and
(b)
on 1 January 2018:
(i)
the wine was in the process of being manufactured into fortified wine; or
(ii)
the wine was fortified wine, and was already in the container in which it was placed at the time of the assessable dealing.
(4)
Treat the requirements in paragraph
19-5(1)(d)
and
19-5(2)(e)
of the
A New Tax System (Wine Equalisation Tax) Act 1999
as being satisfied in relation to the assessable dealing in the wine.
(5)
Despite item 19, the amendment made by items 10, 11 and 16 of this Schedule do not apply in relation to the wine.
21 Transitional
-
producer taken to own the source product for certain wine
(1)
Subitems (2) and (3) apply in relation to an assessable dealing in wine if the following requirements are satisfied:
(a)
the wine is fortified wine;
(b)
the fortified wine was manufactured using wine (the
stored wine
) that was stored in tanks or in barrels (but not in bottles) immediately before 1 January 2018;
(c)
the producer of the fortified wine owned the stored wine immediately before 1 January 2018.
(2)
Treat the producer of the fortified wine as satisfying the requirements in subsection
19-5(3)
of the
A New Tax System (Wine Equalisation Tax) Act 1999
for the stored wine.
(3)
Despite item 19, the amendment made by items 10, 11 and 16 of this Schedule do not apply in relation to the fortified wine.
22 Definitions
In this Division:
commencement time
means the time this item commences.
fortified wine
means wine that meets the requirements for fortified wine set out in clauses 3 to 7 of Standard 4.5.1 (Wine Production Requirements) (as registered on the Federal Register of Legislation and as in force at the commencement time), assuming that the Standard applied to wine manufactured in or outside of Australia.
S 19-5 formerly read:
19-5 Entitlement to producer rebates
(1)
You are entitled to a *producer rebate for *rebatable wine for a *financial year if you are the *producer of the wine and:
(a)
you are liable to wine tax for a *taxable dealing in the wine during the financial year; or
(b)
you would have been liable to wine tax for a dealing in the wine during the financial year had the purchaser not *quoted for the sale at or before the time of the sale.
(2)
You are entitled to a *producer rebate for *rebatable wine for a *financial year if:
(a)
you are approved as a *New Zealand participant; and
(b)
the wine was *produced by you in *New Zealand and exported to the indirect tax zone; and
(c)
you, or another entity, paid wine tax for a *taxable dealing in the wine during the financial year.
History
S 19-5(2) amended by No 2 of 2015, s 3 and Sch 4 item 56, by substituting
"
the indirect tax zone
"
for
"
*Australia
"
in para (b), applicable to a tax period that commences on or after 1 July 2015.
S 19-5(2) inserted by No 160 of 2005, s 3 and Sch 4 item 9, applicable only to wine on which wine tax has been paid for a taxable dealing during the financial year starting on 1 July 2005 or on a subsequent 1 July.
S 19-5 substituted by No 129 of 2004, s 3 and Sch 1 item 1, applicable to dealings in wine made on or after 1 October 2004.
For former wording and transitional provisions of s 19-5, see note under Div 19 heading.