A New Tax System (Wine Equalisation Tax) Act 1999

Part 1 - Introduction  

Division 1 - Preliminary  

1-1   1-1   Short title  
This Act may be cited as the A New Tax System (Wine Equalisation Tax) Act 1999.

1-2   1-2   Commencement  
This Act commences on 1 July 2000.

1-3   How the wine tax law applies to things outside the indirect tax zone and things happening before commencement  

(1)  


The *wine tax law extends to acts, omissions, matters and things outside Australia (within the meaning of the *ITAA 1997) (except where a contrary intention appears).

(2)  
The *wine tax law applies to acts and omissions happening before or after the commencement of this Act (except where there is an express statement to the contrary).

1-4   1-4   States and Territories are bound by the wine tax law  
The *wine tax law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence.

Division 2 - Overview of the wine tax legislation  

2-1   2-1   What this Act is about  
This Act is about the wine equalisation tax (or wine tax).

The wine tax is a single stage tax applying (in most cases) to dealings in wine at the wholesale level. In almost all dealings to which it applies, the GST will also apply.

Note 1:

Wine is widely defined in Subdivision 31-A. It can apply to beverages fermented from any fruit or vegetable. It also extends to cider, perry, mead and sake.

Note 2:

The wine tax is imposed by 3 Acts:

  • (a) the A New Tax System (Wine Equalisation Tax Imposition - General) Act 1999; and
  • (b) the A New Tax System (Wine Equalisation Tax Imposition - Customs) Act 1999; and
  • (c) the A New Tax System (Wine Equalisation Tax Imposition - Excise) Act 1999.
  • 2-5   2-5   Liability to tax (Part 2)  
    Part 2 sets out the rules that establish the liability for the wine tax. The broad aim of the wine tax law is to tax the last wholesale sale of wine (usually the sale from the last wholesaler to the retailer).

    2-10   2-10   Quoting (Part 3)  
    Part 3 is about quoting. The system of quoting is designed to avoid wine tax becoming payable on earlier sales.

    2-15   2-15   Wine tax credits (Part 4)  
    Part 4 is about the entitlement to, and claiming of, wine tax credits. The system of wine tax credits deals (among other things) with situations where wine tax has become payable more than once on the same wine.

    2-20   2-20   Payment of wine tax (Part 5)  


    Part 5 provides for amounts of wine tax, and wine tax credits, to be included in net amounts under the GST system. This has the effect of incorporating the wine tax into the payments and refunds system for the GST. However, the assessed wine tax is paid together with customs duty (where appropriate).

    2-25   2-25   Miscellaneous (Part 6)  
    Part 6 deals with miscellaneous matters.

    2-30   2-30   Interpretative provisions (Part 7)  
    Part 7 contains the Dictionary, which sets out a list of all the terms that are defined in this Act. It also sets out the meanings of some important concepts and rules on how to interpret this Act.

    2-33   2-33   Administration, collection and recovery provisions in the Taxation Administration Act 1953  


    Parts 3-10, 4-1 and 4-15 in Schedule 1 to the Taxation Administration Act 1953 contain provisions relating to the administration of the wine tax, and to collection and recovery of amounts of wine tax.

    Division 3 - Defined terms  

    3-1   When defined terms are identified  

    (1)  
    Many of the terms used in the law relating to the wine tax are defined.

    (2)  
    Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in ``*taxable dealing''. The footnote that goes with the asterisk contains a signpost to the Dictionary definitions starting at section 33-1.

    3-5   When terms are not identified  

    (1)  
    Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked.

    (2)  
    Terms are not asterisked in the non-operative material contained in this Act.

    Note:

    The non-operative material is described in Division 4.

    (3)  


    The following basic terms used throughout the Act are not identified with an asterisk.


    Common definitions that are not asterisked
    Item This term:
    1 amount
    2 Commissioner
    3 entity
    3A indirect tax zone
    5 wine
    6 wine tax
    7 you

    3-10   3-10   Identifying the defined term in a definition  
    Within a definition, the defined term is identified by bold italics .

    Division 4 - Status of Guides and other non-operative material  

    4-1   4-1   Non-operative material  
    In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them.

    This other material falls into 2 main categories.

    4-5   4-5   Explanatory sections  
    One category is the explanatory section in many Divisions. Under the section heading ``What this Division is about'', a short explanation of the Division appears in boxed text.

    Explanatory sections form part of this Act but are not operative provisions. In interpreting an operative provision, explanatory sections may only be considered for limited purposes. They are set out in section 29-10.

    4-10   4-10   Other material  
    The other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions (except for formulas), but are not kept separate from them.

    Part 2 - Wine tax  

    Division 5 - General rules for taxability  

    5-1   What this Division is about  

    Liability for wine tax centres around the concept of an assessable dealing. This concept is defined in the Assessable Dealings Table and the sections following the table.

    5-5   General rules for taxing assessable dealings  

    (1)  
    The *Assessable Dealings Table sets out all the *assessable dealings that can be subject to wine tax.

    (2)  


    If the time of an *assessable dealing (as specified in column 4 of the table) is on or after 1 July 2000, and no exemption applies under Division 7, then:


    (a) the dealing is a *taxable dealing; and


    (b) the entity specified in column 3 is the entity liable to the tax; and


    (c) the tax becomes payable at the time of the dealing, as specified in column 4.

    However, an assessable dealing (other than a *customs dealing) is a taxable dealing only if the entity specified in column 3 is *registered or *required to be registered.

    Note:

    Under Part 5, amounts of wine tax, on assessable dealings (other than customs dealings), are included in your net amount under the GST system.

    (3)  
    To calculate the amount of the tax:


    (a) determine the *taxable value of the dealing under Division 9; and


    (b) multiply the result by 29%.

    Note:

    The amount of tax is reduced for some importations (e.g. accompanied baggage of passengers) that are free of customs duty (see section 5-40).

    (4)  


    The table does not apply to a dealing with wine unless the wine is *assessable wine immediately before the time of the dealing, and is in the indirect tax zone at the time of the dealing.


    Assessable Dealings Table
    Column 1 Column 2 Column 3 Column 4 Column 5
    No. *Assessable dealing *Entity liable Time of dealing Normal taxable value
    Part A - Australian Wine
    AD1a *wholesale sale by an entity that *manufactured the wine in the course of any business seller time of sale the *price (excluding wine tax and *GST) for which the wine was sold
    AD1b *wholesale sale by an entity that is not the *manufacturer of the wine seller time of sale the *price (excluding wine tax and *GST) for which the wine was sold
    AD2a *retail sale by an entity that *manufactured the wine in the course of any business seller time of sale the *notional wholesale selling price
    AD2b *retail sale by an entity that is not the *manufacturer of the wine, but that *obtained the wine under quote; excludes case covered by AD2d seller time of sale the *notional wholesale selling price
    AD2c *royalty-inclusive sale seller time of sale the amount that would be the *notional wholesale purchase price of the wine if the *manufacturer had incurred the *eligible royalty costs
    AD2d *indirect marketing sale seller time of sale the *notional wholesale selling price
    AD2e *untaxed sale by an entity that is not the *manufacturer of the wine seller time of sale the *notional wholesale selling price
    AD2f *retail sale, in the course of any business, of wine that is placed in *containers at a time after wine tax became payable on the wine by a person other than the seller seller time of sale the *notional wholesale selling price
    AD3a *untaxed AOU by an entity that is not the *manufacturer of the wine applier time of *AOU the *notional wholesale selling price
    AD3b *AOU by an entity that manufactured the wine in the course of any business applier time of *AOU the *notional wholesale selling price
    AD3c *AOU by an entity that is not the *manufacturer of the wine, but that *obtained the wine under quote applier time of *AOU (a) the purchase *price (excluding *GST), if the wine was *purchased under quote;
    (b) in other cases, the *notional wholesale selling price
    AD3d *royalty-inclusive AOU applier time of *AOU the amount that would be the *notional wholesale purchase price of the wine if the *manufacturer had incurred the *eligible royalty costs
    AD4b removal from a *customs clearance area of *airport shop goods purchased by a *relevant traveller from an *inwards duty free shop *relevant traveller time at which wine tax is payable under section 23-5 the *price for which the wine was purchased by the *relevant traveller
    Part B - Imported Wine
    AD10 *local entry entity that makes the *local entry time at which wine tax is payable under section 23-5 the *GST importation value
    AD11b *wholesale sale by any entity seller time of sale the *price (excluding wine tax and *GST) for which the wine was sold
    AD12b *retail sale by an entity that *obtained the wine under quote; excludes case covered by AD12d seller time of sale the *notional wholesale selling price
    AD12c *royalty-inclusive sale seller time of sale the amount that would be the *notional wholesale purchase price of the wine if the entity that *imported the wine had incurred the *eligible royalty costs
    AD12d *indirect marketing sale seller time of sale the *notional wholesale selling price
    AD12e *untaxed sale seller time of sale the *notional wholesale selling price
    AD12f *retail sale, in the course of any business, of wine that is placed in *containers at a time after wine tax became payable on the wine by a person other than the seller seller time of sale the *notional wholesale selling price
    AD13a *untaxed AOU applier time of *AOU the *notional wholesale selling price
    AD13c *AOU by an entity that *obtained the wine under quote applier time of *AOU (a) if the wine was *purchased under quote: the purchase *price (excluding *GST);
    (b) if the wine was *locally entered under quote by the applier: the *GST importation value
    AD13d *royalty-inclusive AOU applier time of *AOU the amount that would be the *notional wholesale purchase price of the wine if the entity that *imported the wine had incurred the *eligible royalty costs
    AD14b removal from a *customs clearance area of *airport shop goods purchased by a *relevant traveller from an *inwards duty free shop *relevant traveller time at which wine tax is payable under section 23-5 the *price for which the wine was purchased by the *relevant traveller

    Note:

    The numbering of items in the table uses the following pattern:

    For Australian wine, the dealings are divided into 4 groups:

  • · wholesale sales begin with AD1
  • · retail sales begin with AD2
  • · an AOU begins with AD3
  • · miscellaneous dealings begin with AD4.
  • Imported wine has an additional class of local entry (AD10). The other dealings with imported wine have a number that is 10 higher than the broadly corresponding dealing with Australian wine. For example, AD12b for imported wine corresponds to AD2b for Australian wine.

    5-10   Sale time brought forward if purchaser uses the wine before title passes  

    (1)  
    This section applies to an *assessable dealing that consists of a sale, if the purchaser uses the wine after the time when the contract is made but before the time when title is to pass to the purchaser under the contract.

    (2)  
    The time when the purchaser first so uses the wine is taken to be the time of the sale for the purposes of the *wine tax law.

    5-15   Royalty-inclusive sale (AD2c and AD12c) or AOU (AD3d and AD13d)  

    (1)  
    A *retail sale, or an *AOU, of wine (the current wine ) by you in the course of a business is a royalty-inclusive sale or a royalty-inclusive AOU respectively if the following conditions are met:


    (a) *eligible royalty costs have been incurred at or before the time of the sale or AOU, or could reasonably be expected to be incurred after the time of the sale or AOU, by any or all of the following:


    (i) you;

    (ii) your *associate;

    (iii) any entity (other than the *manufacturer) under an arrangement with you or with your associate;


    (b) the sale or AOU is not covered by another category of *assessable dealing in the *Assessable Dealings Table.

    (2)  
    Eligible royalty cost is a *royalty that is paid or payable in connection with the current wine, except where the amount was paid or payable by any entity before 24 March 1999.

    5-20   5-20   Indirect marketing sale (AD2d and AD12d)  
    A sale of *assessable wine is an indirect marketing sale if it is a *retail sale made by an entity (the marketer ) that is not the *manufacturer of the wine and the sale is made:


    (a) under an arrangement that provides for the sale of the wine to be made by an entity that is acting for the marketer but is not an employee of the marketer; or


    (b) from premises that:


    (i) are used, mainly for making retail sales of wine, by an entity or entities other than the marketer; and

    (ii) are held out to be premises of, or premises used by, the other entity or entities.

    5-25   Untaxed sale (AD2e and AD12e) or AOU (AD3a and AD13a)  

    (1)  
    A *retail sale of wine by you is an untaxed sale unless:


    (a) you *obtained the wine under quote; or


    (b) the wine has previously passed through a taxing point; or


    (c) the sale is an *indirect marketing sale.

    (2)  
    An *AOU, in the course of any business, by you is an untaxed AOU unless:


    (a) you *obtained the wine under quote; or


    (b) the wine has previously passed through a taxing point.

    (3)  


    For the purposes of this section, wine is taken to have passed through a taxing point only if:


    (a) the wine has been the subject of a *taxable dealing; or


    (b) the wine has been the subject of an *assessable dealing that was exempted because you could not be taxed or were entitled to an exemption arising outside the *wine tax law; or


    (c) the wine has been the subject of sales tax within the meaning of the former Sales Tax Assessment Act 1992; or


    (d) section 5 of the former Sales Tax Amendment (Transitional) Act 1992 applies to the wine (whether or not the wine would, but for that section, have been subject to sales tax under the former Sales Tax Assessment Act 1992).

    Note:

    Section 5 ensured that goods subject to sales tax under the pre-1992 sales tax law were not also taxable under the 1992 sales tax law.

    5-30   Local entry of imported wine (AD10)  

    (1)  
    The Local Entry Table sets out the situations that amount to a local entry of *imported wine for the purposes of the *wine tax law. The rest of this section deals with situations involving the withdrawal of a customs entry, or multiple local entries of the same wine.

    (2)  
    The withdrawal of the customs entry underlying a formal local entry (the earlier local entry ) usually has the effect that the earlier local entry is taken never to have happened. However, if:


    (a) there is a later formal local entry after the withdrawal; and


    (b) the tax on that later entry would be less than the tax on the earlier local entry;

    then the earlier local entry is taken never to have been extinguished and the later entry is taken never to have happened.

    (3)  
    If a formal local entry happens after a deemed local entry, the formal local entry is taken never to have happened.

    (4)  
    If a deemed local entry happens after a formal local entry, the formal local entry is taken never to have happened.

    (5)  


    In this section:

    customs entry
    means an entry for home consumption under the Customs Act 1901.

    deemed local entry
    means a local entry that is not a formal local entry.

    formal local entry
    means a local entry covered by *LE1 or *LE2 in the Local Entry Table.


    Local Entry Table
    Column 1 Column 2 Column 3
    No. Situation giving rise to local entry *Entity to be regarded as making the local entry
    LE1 the wine is taken to have been entered for home consumption under subsection 71A(7) of the Customs Act 1901 owner (within the meaning of the Customs Act 1901) of the wine
    LE2 the wine is taken to have been entered for home consumption under subsection 71A(8) of the Customs Act 1901 owner (within the meaning of the Customs Act 1901) of the wine
    LE3 the wine is delivered into home consumption under section 71 of the Customs Act 1901 entity authorised under section 71 of the Customs Act 1901 to deliver the wine
    LE4 the wine is sold under section 72, 87 or 96 of the Customs Act 1901 entity that bought the wine
    LE5 the wine is delivered to an entity under section 208 of the Customs Act 1901 entity to which the wine is delivered
    LE6 the wine is delivered to an entity under a court order made in an action under the Customs Act 1901 for condemnation or recovery of the wine entity to which the wine is delivered
    LE7 the wine is delivered to an entity under a court order made in an action for a declaration that the wine is not forfeited under the Customs Act 1901 entity to which the wine is delivered
    LE8 the wine has been seized under a warrant issued under section 203 of the Customs Act 1901, or under section 203B or 203C of that Act, and is delivered to an entity on the basis that it is not forfeited goods entity to which the wine is delivered
    LE9 delivery of the wine is authorised under subsection 209(6) of the Customs Act 1901 entity to which the wine is delivered or is to be delivered
    LE10 a demand is made under section 35A or 149 of the Customs Act 1901 in relation to the wine entity on which the demand is made
    LE11 the wine is treated as entered for home consumption under subsection 96A(12) of the Customs Act 1901 entity treated under section 96A of the Customs Act 1901 as having entered the wine for home consumption
    LE12 the wine is taken out of a warehouse under a permission granted under section 97 of the Customs Act 1901 and is not returned to the warehouse before the expiration of the period specified in the permission entity to which the permission is given
    LE13 (Repealed by No 176 of 1999)
    LE14 the wine is taken into home consumption in accordance with a permission granted under section 77D of the Customs Act 1901 entity to which the permission is granted
    LE14A the wine is *tradex scheme goods, and any of the circumstances referred to in subsection 21(1) of that Act have occurred in respect of any of the wine holder (within the meaning of the Tradex Scheme Act 1999) of the *tradex order relating to the wine
    LE15 the wine is not covered by any other item in this table but is *imported, and is not entered for home consumption as required under the Customs Act 1901 owner (within the meaning of the Customs Act 1901) of the wine

    5-35   5-35   Time of local entry if wine entered for home consumption before importation  
    (Repealed by No 176 of 1999)

    5-40   5-40   Reductions in wine tax for some importations that are free of customs duty  
    (Repealed by No 176 of 1999)

    5-50   Purchaser quoting on purchase from producer - failure to deal according to quote  

    (1)  
    This section applies if:


    (a) you *purchased wine under quote from the *producer of the wine; and


    (b) in your *quote you did not state that you have the intention of dealing with the wine in one of the following ways:


    (i) a way described in paragraph 13-5(1)(c) or (d);

    (ii) by sale to an entity that will quote for the sale; and


    (c) you cause an *assessable dealing with the wine that is a dealing in a way described in subparagraph (b)(i) or (ii).

    (2)  
    Sections 7-5 (Exemption for dealings that are GST-free supplies etc.) and 7-10 (Exemptions based on quoting) do not apply to the *assessable dealing mentioned in paragraph (1)(c).

    (3)  
    For the purposes of this Division:


    (a) disregard paragraph (g) of the definition of application to own use in section 33-1; and


    (b) treat the matter referred to in that paragraph as being an application to own use.

    Division 7 - Exemptions  

    7-1   7-1   What this Division is about  

    In some circumstances, a dealing with wine is exempt from wine tax even if it is an assessable dealing.

    7-5   Exemption for dealings that are GST-free supplies or non-taxable importations  


    An *assessable dealing is not taxable if the dealing is:


    (a) a *supply that is *GST-free (other than because of Subdivision 38-D (child care) of the *GST Act); or


    (b) a *local entry relating to an *importation that is a *non-taxable importation.

    7-10   Exemptions based on quoting  

    (1)  
    A sale is not taxable if the purchaser *quotes for the sale at or before the time of the sale.

    (2)  
    A *customs dealing is not taxable if the entity that would, apart from this subsection, be liable for the wine tax on the dealing *quotes for the dealing at or before the time of the dealing.

    7-15   Exemptions based on Schedule 4 to the Customs Tariff Act 1995  

    (1)  


    A *customs dealing is not taxable if it is an *importation of wine covered by item 10, 11, 15, 18, 21, 21A, 24 or 27 in Schedule 4 to the *Customs Tariff.

    (2)  


    To avoid doubt, a reference to wine that is covered by an item in Schedule 4 to the *Customs Tariff includes a reference to goods to which that item would apply apart from the operation of subsection 18(1) of the Customs Tariff Act 1995.

    7-20   7-20   Exemption for local entry if wine has been taxed while in bond  


    A *local entry of wine is not taxable if you or anyone else became liable to tax on a previous *assessable dealing with the wine while it was in bond or under customs control under the Customs Act 1901.

    7-25   Goods returned to the indirect tax zone in an unaltered condition  

    (1)  
    A *local entry of wine is not taxable if:


    (a) the wine was exported from the indirect tax zone and is returned to the indirect tax zone, without having been subject to any treatment, industrial processing, alteration or any other process since its export; and


    (b) the importer was not entitled to, and did not claim, a payment under Division 25 (about the tourist refund scheme) related to the export of the wine; and


    (c) the importer:


    (i) is the manufacturer of the wine; or

    (ii) has previously acquired the wine, and the supply by means of which the importer acquired the wine was a *taxable dealing; or

    (iii) has previously imported the goods, and the previous importation was a *taxable dealing.

    (2)  
    A *local entry of wine is not taxable if:


    (a) the importer had manufactured, acquired or imported the wine before 1 July 2000; and


    (b) the wine was exported from the indirect tax zone before, on or after 1 July 2000; and


    (c) the wine is returned to the indirect tax zone on or after 1 July 2000, without having been subject to any treatment, industrial processing, alteration or any other process since its export; and


    (d) the importer was not entitled to, and did not claim, a payment under Division 25 (about the tourist refund scheme) related to the export of the wine; and


    (e) the ownership of the wine when it is returned to the indirect tax zone is the same as its ownership on 1 July 2000.

    Note:

    An importation covered by this section may also be duty-free under item 17 of Schedule 4 to the Customs Tariff Act 1995.

    Division 9 - Taxable value  

    9-1   9-1   What this Division is about  

    In most cases, the taxable value of an assessable dealing is multiplied by the rate of wine tax to calculate the amount of wine tax.

    Subdivision 9-A - General rules for working out taxable value  

    9-5   How to work out the taxable value of a taxable dealing  

    (1)  
    The general rules for calculating the taxable value are set out in the *Assessable Dealings Table.

    (2)  
    In some cases, the *Assessable Dealings Table refers to the *notional wholesale selling price as the *taxable value. Subdivision 9-B sets out how to work out the notional wholesale selling price.

    (3)  
    In some cases, amounts must be added to the amount set out in the *Assessable Dealings Table. These additions are set out in Subdivision 9-C.

    (4)  
    In working out the *taxable value of wine, any rebate, refund or other payment or credit made by a State or Territory in respect of the wine is to be disregarded.

    9-10   Agreement with Commissioner regarding calculation of taxable value  

    (1)  
    The Commissioner may enter into an agreement with you about calculating the *taxable values of particular *taxable dealings for which you are liable for the wine tax.

    (2)  
    So far as the agreement is inconsistent with this Act, the agreement prevails.

    Subdivision 9-B - Notional wholesale selling price  

    9-25   The 2 methods of working out notional wholesale selling prices for retail dealings with grape wine  

    (1)  
    There are 2 methods for working out the notional wholesale selling price for a *taxable dealing that is either:


    (a) a *retail sale of *grape wine; or


    (b) an *AOU connected with retail sales of wine that is grape wine.

    (2)  
    The *half retail price method is used unless you have chosen under subsection (3) to use the *average wholesale price method.

    (3)  
    You may choose to use the *average wholesale price method if, during the *tax period in respect of which you are liable to pay wine tax on the dealing, at least 10% by value of all your sales of *grape wine that:


    (a) is of the same vintage as the grape wine to which the dealing relates; and


    (b) is produced from the same grape varieties, or the same blend of grape varieties, as the grape wine to which the dealing relates;

    are *wholesale sales.

    9-30   9-30   Working out notional wholesale selling prices for retail dealings with wine that is not grape wine  
    The notional wholesale selling price for a *taxable dealing that is either:


    (a) a *retail sale of wine that is not *grape wine; or


    (b) an *AOU connected with retail sales of wine that is not grape wine;

    is worked out using the *half retail price method.

    9-35   The half retail price method  

    (1)  
    The notional wholesale selling price for a *retail sale of *grape wine, worked out using the half retail price method , is 50% of the *price of the sale.

    (2)  
    The notional wholesale selling price for an *AOU connected with retail sales of grape wine, worked out using the half retail price method , is 50% of the *price for which you would normally have sold the wine if the sale were a *retail sale.

    9-40   9-40   The average wholesale price method  
    The notional wholesale selling price for a *retail sale of *grape wine, or for an *AOU connected with retail sales of grape wine, worked out using the average wholesale price method is the weighted average of the *prices (excluding wine tax and *GST) for *wholesale sales that you have made of grape wine that:


    (a) is of the same vintage as the grape wine to which the retail sale or AOU relates; and


    (b) is produced from the same grape varieties, or the same blend of grape varieties, as the grape wine to which the retail sale or AOU relates;

    during the *tax period in respect of which you are liable to pay wine tax on the retail sale or AOU.

    Example:

    If, during a tax period, you make 70% of wholesale sales of grape wine of a particular vintage and variety at $80 per dozen, and the remaining 30% at $90 per dozen, the weighted average of the wholesale prices for wholesale sales during the tax period is:

    [70% × $80] + [30% × $90] = $83 per dozen

    9-45   9-45   Notional wholesale selling prices for other dealings  
    The notional wholesale selling price for a taxable dealing with wine that is neither:


    (a) a *retail sale of wine; nor


    (b) an *AOU connected with retail sales of wine;

    is the *price (excluding wine tax and *GST) for which you could reasonably have been expected to sell the wine by wholesale under an arm's length transaction.

    Subdivision 9-C - Additions to taxable value  

    9-65   Taxable dealing with wine that is the contents of a container  

    (1)  
    This section deals with situations in which a *container is associated with wine (the contents ) that is the subject of a *taxable dealing. The aim of this section is to ensure that the *taxable value will include a component for the container, even though the parties may have allocated a separate amount to the container.

    (2)  
    If:


    (a) the *taxable value of the dealing is calculated by reference to the *price (excluding wine tax and *GST) for which the contents were sold; and


    (b) the parties have allocated a separate amount to the *container;

    then the taxable value is *increased by so much of the value of the container as is recouped by the seller in connection with the sale of the contents.

    (3)  
    If the *taxable value of the dealing is not calculated as mentioned in subsection (2), then the taxable value is *increased by so much of the value of the *container as could reasonably be expected to have been recouped by you in connection with a hypothetical sale of the contents at the time of the actual *taxable dealing with the contents.

    9-70   Assessable dealings with wine that involve the payment of an associated royalty  

    (1)  
    If a *royalty is paid or payable, or likely to be paid or payable, in connection with any of the following events in respect of particular wine:


    (a) the *manufacture of the wine;


    (b) the *importation or *local entry of the wine;


    (c) a sale of the wine;

    then the *taxable value of any *taxable dealing with that wine that happens at or after that event includes the amount or value of the royalty.

    (2)  
    Royalty is any amount to the extent to which it is paid or payable (whether or not periodically) as consideration for any of the following things (or for the right to do them):


    (a) doing anything that would be an infringement of copyright if it were done without the licence of the copyright owner;


    (b) making, using, exercising or vending an invention (each of those terms having the meaning it has in the Patents Act 1990);


    (c) using a design that is of a kind capable of being registered under the Designs Act 2003 (whether or not it is registered under that Act or under any other law);


    (d) using a trade mark that is of a kind capable of being registered under the Trade Marks Act 1995 (whether or not it is registered under that Act or under any other law), but not including a mark that relates to a service;


    (e) using confidential information;


    (f) using machinery, implements, apparatus or other equipment;


    (g) *supplying scientific, technical, industrial, commercial or other knowledge or information;


    (h) supplying assistance that is ancillary to, and is supplied as a means of enabling the application or enjoyment of, any matter covered by paragraphs (a) to (g);


    (i) a total or partial forbearance in respect of any matter covered by paragraphs (a) to (h).

    Terms used in paragraph (a) of this definition have the same meaning as in the Copyright Act 1968.

    9-75   9-75   Assessable dealing with wine in bond  


    If a *taxable dealing happens while the wine is in bond or otherwise subject to customs control under the Customs Act 1901, the *taxable value is *increased by the amount of *customs duty to which the wine would have been subject if it had been entered for home consumption under the Customs Act 1901 at the time of the taxable dealing.

    9-80   9-80   Amounts not to be added if they are already included in the taxable value  
    This Subdivision does not add any amount to the *taxable value so far as it would already be included in the taxable value.

    Part 3 - Quoting  

    Division 13 - Quoting for dealings in wine  

    13-1   13-1   What this Division is about  

    In certain circumstances you can quote for a dealing with wine. This is designed to avoid the wine tax becoming payable on sales preceding the last wholesale sale. (Under section 7-10, wine tax is not payable on a sale for which the purchaser has quoted.)

    13-5   Standard grounds for quoting ABN  

    (1)  
    You are entitled to *quote your *ABN for a dealing with wine if, at the time of quoting, you have the intention of dealing with the wine in any of the following ways:


    (a) selling the wine by *wholesale, or by *indirect marketing sale, while the wine is in the indirect tax zone;


    (b) selling the wine, by any kind of sale, while it is in the indirect tax zone (this ground is available only if you are mainly a wholesaler at the time of quoting);


    (c) using the wine as a material in *manufacture or other treatment or processing, whether or not it relates to or results in other wine;


    (d) making a *supply of the wine that will be *GST-free.

    (2)  
    However, you are not entitled to *quote unless you are *registered.

    (3)  
    For the purposes of paragraph (1)(b), you are mainly a wholesaler at the quoting time only if:


    (a) *wholesale sales and *indirect marketing sales account for more than half of the total value of all sales of *assessable wine by you during the 12 months ending at the quoting time; or


    (b) you have an expectation (based on reasonable grounds) that wholesale sales and indirect marketing sales will account for more than half of the total value of all sales of assessable wine by you during the 12 months starting at the quoting time.

    For this purpose, the value of a sale of wine is the *price for which the wine is sold.

    13-10   13-10   Additional quoting grounds in special circumstances  
    The Commissioner may (if you are *registered) authorise you to *quote your *ABN in special circumstances in which you would not otherwise be entitled to quote.

    13-15   Periodic quoting  

    (1)  
    You may make a periodic *quote under this section for purchases that you propose to make from an entity (the supplier ) during the period, not exceeding 12 months, covered by the periodic quote.

    (2)  
    If you make such a periodic *quote on or before the first day of the period to which the quote relates, you are treated as having quoted your *ABN for all purchases during the period from the *supplier, other than purchases in respect of which you have notified the supplier in accordance with subsection (3).

    (3)  
    If you are not entitled to *quote for a particular purchase from the *supplier during the period, you must notify the supplier of that fact at or before the time of the purchase. The notification must be in the *approved form.

    (4)  


    You commit an offence if you contravene subsection (3).

    Penalty: 20 penalty units.

    Note 1:

    Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

    Note 2:

    See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

    (5)  
    Section 13-30 applies to a *quote that you are treated as having made under subsection (2) of this section for a particular purchase.

    13-20   Manner in which quote must be made  

    (1)  
    A *quote (including a periodic quote) must be made in the *approved form.

    (2)  
    A *quote for a dealing is not effective unless it is made at or before the time of the dealing.

    13-25   13-25   Incorrect quote nevertheless effective for certain purposes  
    If you *quote in circumstances in which you are not entitled to quote, or the quote is not in the *approved form, the quote is nevertheless:


    (a) effective for the purposes of Subdivision 31-D; and


    (b) effective for the purpose of section 7-10, unless section 13-30 applies.

    13-30   13-30   Quote not effective for certain purposes if there are grounds for believing it was improperly made  


    A *quote is not effective, so far as it would have resulted in an exemption, if at the time of the quote the entity to which the quote is made has reasonable grounds for believing that:


    (a) you are not entitled to quote in the particular circumstances; or


    (b) the quote is not made in the *approved form; or


    (c) the quote is false or misleading in a material particular (either because of something stated in the quote or something left out).

    13-32   13-32   Quote not effective if entity to whom quote is made purchased the wine for a price that included wine tax  


    A *quote is not effective for the purposes of applying subsection 7-10(1) to a particular sale if the entity to which the quote is made purchased the wine for a *price that included wine tax.

    13-35   13-35   Improper quoting is an offence  
    You must not, in relation to any dealing with wine:


    (a) quote an *ABN for the purposes of this Act:


    (i) in circumstances in which you are not entitled to quote; or

    (ii) in contravention of subsection 13-20(1); or


    (b) in any other way falsely quote an ABN.

    Penalty: 20 penalty units.

    Note 1:

    Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

    Note 2:

    See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

    Note 3:

    Section 23 of the A New Tax System (Australian Business Number) Act 1999 provides penalties for misuse of ABNs.

    Part 4 - Wine tax credits  

    Division 17 - Wine tax credits  

    17-1   17-1   What this Division is about  


    Wine tax credits can arise in a number of circumstances. Generally speaking, they prevent wine tax applying more than once to the same goods.

    Note:

    If you are in the GST system, wine tax credits are included in your net amounts (see Part 5). If you are not in the GST system, you can claim wine tax credits under this Part. Producer rebates under Division 19 are a form of wine tax credit.

    17-5   Wine tax credit entitlements  

    (1)  
    The *Wine Tax Credit Table sets out the situations in which you are entitled to a *wine tax credit.

    (2)  
    You are not entitled to a *wine tax credit for an amount of tax for which a wine tax credit entitlement has previously arisen (whether for you or another entity).

    (3)  


    You are not entitled to a *wine tax credit unless you make a claim for the wine tax credit under section 17-10.


    Wine Tax Credit Table
    No. Summary of ground Details of ground Amount of *wine tax credit Time *wine tax credit arises
    CR1 Tax overpaid You have paid an amount as wine tax that was not legally payable. the amount overpaid, to the extent that you have not *passed it on when the amount became overpaid
    CR2 (Repealed by No 94 of 2017)
    CR3 (Repealed by No 94 of 2017)
    CR4 Avoiding double tax on the same wine You have become liable to wine tax on an *assessable dealing (the current dealing ) in relation to wine, but have *borne wine tax on all of the wine before the time of the current dealing. the wine tax previously *borne on the wine time of the current dealing
    CR5 (Repealed by No 94 of 2017)
    CR6 (Repealed by No 94 of 2017)
    CR7 Ensuring no double tax in respect of *containers You are liable to the wine tax on an *assessable dealing with wine that is the contents of a *container. You have *borne wine tax on the container. the *wine tax borne on the *container time of the *assessable dealing
    CR8 Replacement of defective wine You have *borne wine tax on *assessable wine used for the purpose of replacing other wine because of defects in the other wine. *wine tax borne on replacement wine time of replacement
    CR9 *Producer rebate An *assessable dealing is made in circumstances that entitle you to a producer rebate under Division 19. the amount of the producer rebate under Division 19 immediately before the end of the financial year in which the assessable dealing occurs
    CR10 (Repealed by No 94 of 2017)
    CR11 (Repealed by No 94 of 2017)
    CR12 (Repealed by No 176 of 1999)
    CR13 (Repealed by No 94 of 2017)
    CR14 Drawback of *customs duty on *imported wine You have become liable to wine tax on a *local entry of wine for which drawback of *customs duty has been allowed under section 168 of the Customs Act 1901 (or, in the Commissioner's opinion, would have been allowed if wine had been liable to duty). wine tax payable on the *local entry time when drawback was allowed (or would have been allowed)
    CR15 Sale *price written off as bad debt You have:
    (a) paid wine tax on an *assessable dealing that is a sale and later written off some or all of the *price for which the wine was sold; or
    (b) paid wine tax on an assessable dealing that is a *local entry (other than an *LE4) and later written off some or all of the price for which the wine was first sold by you after the local entry.
    a proportion of the wine tax paid that is equal to the proportion of the debt written off time of writing off

    17-10   Claims for wine tax credits  

    (1)  


    If you are *registered or *required to be registered, you may make a claim for a *wine tax credit (other than a claim for a *producer rebate under subsection 19-5(2)) by including the amount of the wine tax credit in the *reduction of your *net amount for the *tax period in question under section 21-15.

    (2)  


    If you are not *registered or *required to be registered, you may make a claim for a *wine tax credit (other than a claim for a *producer rebate under subsection 19-5(2)) in the *approved form. The claim must be accompanied by such supporting evidence as the Commissioner requires.

    (2A)  


    If you are a *New Zealand participant, you may make a claim for a *wine tax credit under subsection 19-5(2) in the *approved form. The claim must be accompanied by such supporting evidence as the Commissioner requires.

    (2B)  


    The Commissioner may determine, by legislative instrument, the time or times during which claims for *wine tax credits under subsection 19-5(2) may be made.

    (3)  


    A claim under subsection (2) or (2A) must be lodged with the Commissioner within 4 years after the time when the *wine tax credit arises.

    17-15   17-15   Commissioner not required to consider credit claims for less than $200  


    The Commissioner is not required to consider a claim under subsection 17-10(2) or (2A) for a *wine tax credit if the total amount claimed is less than $200.

    17-20   17-20   Wine tax credits to be applied against tax liabilities and excess refunded  


    If you have claimed under subsection 17-10(2) or (2A) a *wine tax credit to which you are entitled, the Commissioner must apply the wine tax credit under Division 3 of Part IIB of the Taxation Administration Act 1953.

    17-25   17-25   Excess wine tax credits must be repaid  
    If the amount applied by the Commissioner in accordance with section 17-20 is more than the amount of the *wine tax credit to which you are properly entitled, the excess is to be treated as if it were wine tax that became payable, and due for payment, by you at the time when it was applied.

    Note:

    The main effect of treating the amount as if it were tax is to apply the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953.

    17-30   Clawback of CR15 wine tax credit on later recovery of bad debt  

    (1)  
    A *wine tax credit under *CR15 in relation to an amount written off by you as a bad debt is subject to the condition that you are liable to pay an amount under this section if you later recover some or all of the amount written off.

    (2)  
    The amount payable by you is calculated using the following formula:


    *CR15 wine tax credit × Amount recovered
    Amount written off

    (3)  
    The amount is to be treated as if it were wine tax that became payable by you at the time of recovery of the bad debt, and, for the purposes of Part 5, were attributable to the *tax period in which the recovery happened.

    Note:

    The main effect of treating the amount as if it were wine tax is to apply the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953.

    17-35   Clawback of CR8 wine tax credit on later sale of defective wine  

    (1)  
    A *wine tax credit under *CR8 for wine tax on wine that was used to replace defective wine is subject to the condition that you are liable to pay an amount under this section if you later sell the defective wine.

    (2)  
    The amount payable by you is calculated using the following formula:


    *CR8 wine tax credit × Consideration for later sale of defective wine
    Taxable value of earlier
    dealing with the
    defective wine
    + Tax payable on the
    earlier dealing with the
    defective wine

    (3)  
    The amount is to be treated as if it were wine tax that became payable by you at the time of the later sale of the defective wine, and, for the purposes of Part 5, were attributable to the *tax period in which the later sale happened.

    Note:

    The main effect of treating the amount as if it were wine tax is to apply the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953.

    17-37   17-37   Clawback of CR10 wine tax credit on later sale  
    (Repealed by No 94 of 2017)

    17-40   Agreement with Commissioner regarding wine tax credits  

    (1)  
    The Commissioner may enter into an agreement with you regarding the manner of calculating and claiming *wine tax credits to which you are entitled.

    (2)  
    So far as the agreement is inconsistent with this Act, the agreement prevails.

    17-45   17-45   Notifying disallowance of wine tax credit claim  
    If the Commissioner decides to disallow the whole or a part of a claim for a *wine tax credit, the Commissioner must notify you of the decision.

    Note:

    Disallowing the whole or a part of a claim for a wine tax credit is a reviewable wine tax decision (see Subdivision 111-C in Schedule 1 to the Taxation Administration Act 1953).

    Division 19 - Producer rebates  

    19-1   19-1   What this Division is about  


    Wine producers are entitled to a rebate for certain dealings in wine. The rebate is provided in the form of a wine tax credit.

    Note:

    Credit ground CR9 is producer rebates.

    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.

    19-7   Approval as New Zealand participant  

    (1)  
    You may apply, in writing, in the *approved form, to the Commissioner for approval as a *New Zealand participant.

    (2)  
    You are eligible to be approved as a *New Zealand participant if the Commissioner is satisfied, on the basis of your application and any other relevant information of which the Commissioner becomes aware, that:


    (a) you are a *producer of *rebatable wine in *New Zealand; and


    (b) the rebatable wine has been, or is likely to be, exported to the indirect tax zone.

    (3)  
    If the Commissioner, after consideration of your application, is satisfied of the matters referred to in subsection (2) in relation to you, the Commissioner must, by written instrument, approve you as a *New Zealand participant.

    (4)  
    The Commissioner must decide the date of effect of that approval and include that date in the instrument of approval. That date may be the day of the decision, or a day before or after that day.

    Note:

    Deciding under this subsection the date of effect of any approval of an entity as a New Zealand participant is a reviewable wine tax decision (see Subdivision 111-C in Schedule 1 to the Taxation Administration Act 1953).

    (5)  
    If the Commissioner approves you as a *New Zealand participant, the Commissioner must, by notice in writing sent to you, inform you that you have been so approved and of the date from which the approval has effect.

    (6)  
    If the Commissioner, after consideration of your application, is not satisfied of the matters referred to in subsection (2) in relation to you, the Commissioner must:


    (a) by written instrument, refuse to approve you as a *New Zealand participant; and


    (b) by notice in writing sent to you, inform you that the Commissioner has so decided and of the reasons for that decision.

    Note:

    Refusing to approve an entity as a New Zealand participant is a reviewable wine tax decision (see Subdivision 111-C in Schedule 1 to the Taxation Administration Act 1953).

    (7)  
    An instrument of approval under subsection (3) and an instrument refusing approval under subsection (6) are not legislative instruments.

    19-8   Revoking an approval as a New Zealand participant  

    (1)  
    If, at any time, the Commissioner becomes aware that you cease to satisfy the criteria for approval as a *New Zealand participant, the Commissioner must, by written instrument, revoke your approval.

    Note:

    Revoking under this subsection the approval of an entity as a New Zealand participant is a reviewable wine tax decision (see Subdivision 111-C in Schedule 1 to the Taxation Administration Act 1953).

    (2)  
    The Commissioner must decide the date of effect of that revocation and include that date in the instrument of revocation. That date may be the day of the decision, or a day before or after that day.

    Note:

    Deciding under this subsection the date of effect of any revocation of an approval as a New Zealand participant is a reviewable wine tax decision (see Subdivision 111-C in Schedule 1 to the Taxation Administration Act 1953).

    (3)  
    If the Commissioner revokes your approval as a *New Zealand participant, the Commissioner must, by notice in writing sent to you, inform you that the Commissioner has revoked your approval, indicate the date from which the revocation has effect and of the reasons for revoking that approval.

    (4)  
    An instrument of revocation under subsection (1) is not a legislative instrument.

    19-9   Notification of changed circumstances  

    (1)  
    An entity approved as a *New Zealand participant must notify the Commissioner in writing of any circumstances under which the Commissioner must revoke the approval. The notification must be given to the Commissioner within 21 days after the circumstances occurred.

    (2)  
    A notification under subsection (1) is not a legislative instrument.

    19-10   19-10   Exceptions  
    (Repealed by No 94 of 2017)

    19-15   Amount of producer rebates  

    (1)  


    The amount of the *producer rebates to which you are entitled because of subsection 19-5(1) for the wine for the *financial year is:


    (a) for *wholesale sales - 29% of the *price (excluding wine tax and *GST) for which the wine was sold; and


    (b) for *retail sales and *AOUs - 29% of the *notional wholesale selling price of the wine.

    (1A)  


    The amount of the *producer rebates to which you are entitled because of subsection 19-5(2) for the wine for the *financial year is an amount equal to 29% of the approved selling price for the wine.

    (1B)  


    In working out the amount of the *producer rebate to which you are entitledbecause of subsection 19-5(2), any component used to determine the approved selling price that is expressed in a currency other than Australian currency is to be treated as if it were an amount of Australian currency worked out in the manner determined, by legislative instrument, by the Commissioner.

    (1C)  


    In this section:

    approved selling price
    , in relation to wine sold by a *New Zealand participant, means the participant's selling price for the wine net of any expenses unrelated to the production of the wine in *New Zealand, including but not limited to:


    (a) expenses relating to transportation, freight and insurance, agent's fees and any other costs associated with exportation of the wine from New Zealand and importation of the wine into the indirect tax zone; and


    (b) New Zealand and Australian taxes including customs duties.

    (2)  


    The maximum amount of *producer rebates to which a *producer is entitled for a *financial year under this Division is $350,000.

    (3)  


    However, if the *producer is an *associated producer of one or more other producers for a *financial year, the maximum amount of *producer rebates to which those producers are entitled as a group for the financial year under this Division is $350,000.

    19-17   19-17   Earlier producer rebates  
    (Repealed by No 94 of 2017)

    19-20   Associated producers  

    (1)  


    A *producer is an associated producer of another producer for a *financial year if, at any time during that financial year:


    (a) the producer would be *connected with the other producer if subsection 328-125(8) of the *ITAA 1997 were omitted; or


    (b) the producer:


    (i) is under an obligation (whether formal or informal); or

    (ii) might reasonably be expected;
    to act in accordance with the directions, instructions or wishes (however communicated) of the other producer in relation to the first producer's financial affairs; or


    (c) the other producer:


    (i) is under an obligation (whether formal or informal); or

    (ii) might reasonably be expected;
    to act in accordance with the directions, instructions or wishes (however communicated) of the first producer in relation to the other producer's financial affairs.

    (2)  
    2 *producers are associated producers if each of them:


    (a) is under an obligation (whether formal or informal); or


    (b) might reasonably be expected;

    to act in accordance with the directions, instructions or wishes (however communicated) of the same third entity in relation to their financial affairs.

    (3)  
    A *producer is an associated producer of another producer if:


    (a) the first producer:


    (i) is under an obligation (whether formal or informal); or

    (ii) might reasonably be expected;
    to act in accordance with the directions, instructions or wishes (however communicated) of a third producer in relation to the first producer's financial affairs; and


    (b) the third producer:


    (i) is under an obligation (whether formal or informal); or

    (ii) might reasonably be expected;
    to act in accordance with the directions, instructions or wishes (however communicated) of the other producer in relation to the third producer's financial affairs.

    19-25   Excess claims  

    (1)  


    If the sum of the amounts of *producer rebates that you claim because of subsection 19-5(1) for *tax periods during the *financial year exceeds the amount of the *producer rebates to which you are entitled in respect of the financial year, you are liable to pay an amount equal to that excess.

    (1A)  


    If the sum of the amounts of *producer rebates that you claim because of subsection 19-5(2) for the *financial year exceeds the amount of the producer rebates to which you are entitled in respect of that financial year, you are liable to pay an amount equal to that excess.

    (2)  


    Subsection (3) applies if a *producer is an *associated producer of one or more other producers for a *financial year and the *producer rebates claimed by those producers as a group for the financial year under this Division is more than $350,000.

    (3)  
    Each *producer member of the group is jointly and severally liable to pay an amount equal to the excess. However, none of the individual producer members is liable to pay an amount that exceeds the sum of the amounts of *producer rebates that that producer claimed for the *financial year.

    (4)  


    An amount payable under this section is to be treated as if it were wine tax payable at the end of the *financial year, and, except in the case of a *New Zealand participant, for the purposes of Part 5, were attributable to the last tax period of the financial year.
    Note:

    The main effect of treating the amount as if it were wine tax is to apply the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953.

    (5)  


    For the purposes of the application of Parts 3-10 and 4-1 in Schedule 1 to the Taxation Administration Act 1953, a *producer rebate under subsection 19-5(2) is to be treated as a net amount.

    19-28   19-28   Obligations relating to certain wholesale sales  
    (Repealed by No 94 of 2017)

    19-30   19-30   Obligation of purchasers  
    (Repealed by No 94 of 2017)

    Part 5 - Payments and refunds of wine tax  

    Division 21 - Inclusion of wine tax and wine tax credits in net amounts  

    21-1   What this Division is about  

    Wine tax (except wine tax on customs dealings) is added to net amounts under the GST Act. Wine tax credits are subtracted from those net amounts.

    Note:

    Division 165 (Anti-avoidance) of the GST Act will cover avoidance schemes relating to wine tax so far as they affect net amounts, because such schemes affect amounts payable under the GST Act.

    Subdivision 21-A - General  

    21-5   Net amounts increased by amounts of wine tax  

    (1)  


    Your *net amount for a *tax period is *increased by the sum of all of the amounts of wine tax (if any) payable by you that are attributable to that tax period.

    (2)  
    However, this section does not apply to wine tax payable on *customs dealings.

    Note:

    This section has the effect of incorporating your liability for the wine tax (other than wine tax on customs dealings) into the amount of GST that you are liable to pay under Division 33 of the GST Act, or into the amount of refund to which you are entitled under Division 35 of the GST Act.

    21-10   Attribution rules for wine tax  

    (1)  
    The wine tax payable by you on a *taxable dealing that is a *supply is attributable to the same *tax period, or tax periods, applying to you as the tax period or tax periods to which:


    (a) if the supply is a *taxable supply - the taxable supply is attributable; or


    (b) if the supply is not a taxable supply - the supply would be attributable if it were a taxable supply.

    For the basic rules on attribution of taxable supplies, see section 29-5 of the GST Act.

    (2)  
    The wine tax payable by you on a *taxable dealing that is not a *supply is attributable to the *tax period during which the time of dealing occurs, as specified in column 4 of the *Assessable Dealings Table.

    21-15   21-15   Net amounts reduced by amounts of wine tax credits  


    Your *net amount for a *tax period is *reduced by the sum of all of the amounts of *wine tax credits (if any) to which you are entitled that arise during that tax period.
    Note 1:

    This section has the effect of incorporating your entitlement to wine tax credits into the amount of GST that you are liable to pay under Division 33 of the GST Act, or into the amount of refund to which you are entitled under Division 35 of the GST Act.

    Note 2:

    If you are not registered or required to be registered (and therefore do not have net amounts), you can claim wine tax credits to which you are entitled directly from the Commissioner (see subsection 17-10(2)).

    Subdivision 21-B - Members of GST groups  

    21-40   Who is liable for wine tax  

    (1)  
    Wine tax payable on a *taxable dealing for which a *member of a *GST group would (apart from this section) be liable to the tax:


    (a) is payable by the *representative member; and


    (b) is not payable by the member that would be so liable (unless the member is the representative member).

    (2)  
    However, if the member is not the *representative member of the *GST group, this section only applies to wine tax payable on a *customs dealing if the tax is payable at a time when wine tax on *taxable dealings is normally payable by the representative member.

    (3)  
    This section has effect despite subsection 5-5(2) (which is about liability for wine tax).

    21-45   Who is entitled to wine tax credits  

    (1)  
    If a *member of a *GST group would (apart from this section) be entitled to a *wine tax credit:


    (a) the *representative member is entitled to the wine tax credit; and


    (b) the member that would be so entitled is not entitled to the wine tax credit (unless the member is the representative member).

    (2)  
    This section has effect despite section 17-5 (which is about entitlement to wine tax credits).

    Subdivision 21-C - Participants in GST joint ventures  

    21-70   Who is liable for wine tax  

    (1)  
    Wine tax payable on a *taxable dealing that the *joint venture operator of a *GST joint venture makes, on behalf of another *participant in the joint venture, in the course of activities for which the joint venture was entered into:


    (a) is payable by the joint venture operator; and


    (b) is not payable by the other participant.

    (2)  
    This section has effect despite subsection 5-5(2) (which is about liability for wine tax).

    21-75   Who is entitled to wine tax credits  

    (1)  
    If a *participant in a *GST joint venture would (apart from this section) be entitled to a *wine tax credit relating to a *taxable dealing that the *joint venture operator of the joint venture makes on the participant's behalf:


    (a) the joint venture operator is entitled to the wine tax credit; and


    (b) the participant that would be so entitled is not entitled to the wine tax credit (unless the participant is the joint venture operator).

    (2)  
    This section has effect despite section 17-5 (which is about entitlement to wine tax credits).

    21-80   Additional net amounts relating to GST joint ventures  


    The additional net amount relating to a *GST joint venture in section 51-45 of the *GST Act:


    (a) is increased by the amount of any wine tax on *taxable dealings for which the *joint venture operator is liable because of section 21-70; and


    (b) is decreased by the amount of any *wine tax credits to which the joint venture operator is entitled because of section 21-75.

    Division 23 - Wine tax on customs dealings  

    23-1   What this Division is about  


    Wine tax on a customs dealing is not included in net amounts. Generally speaking, it is paid together with customs duty. (This is consistent with payment of assessed GST on taxable importations.)

    23-5   Payment of wine tax on customs dealings  

    (1)  


    Amounts of *assessed wine tax on *customs dealings are to be paid to the Commonwealth:


    (a) at the same time, at the same place, and in the same manner, as *customs duty is payable on the wine in question (or would be payable if the wine were subject to customs duty); or


    (b) in the circumstances specified in the regulations, within such further time specified in the regulations, and at the place and in the manner specified in the regulations.

    Note 1:

    The regulations could (for example) allow for deferral of payments to coincide with payments of assessed net amounts.

    Note 1A:

    For provisions about assessment of wine tax on customs dealings, see Division 155 in Schedule 1 to the Taxation Administration Act 1953.

    Note 2:

    For provisions about collection and recovery of assessed wine tax on customs dealings, see Subdivision 105-C, and Part 4-15, in Schedule 1 to the Taxation Administration Act 1953.

    (2)  


    An officer of Customs (within the meaning of subsection 4(1) of the Customs Act 1901) may refuse to deliver the goods concerned unless the *assessed wine tax has been paid.

    23-10   23-10   Application of Division 165 of the GST Act  
    Division 165 of the *GST Act applies to amounts that are payable under this Division as if they were amounts payable under the GST Act.

    Division 25 - Tourist refund scheme  

    25-1   What this Division is about  


    If you take wine overseas as accompanied baggage, or you are a resident of an external Territory and send wine home, you may be entitled to a refund of the wine tax borne by you on the wine.

    25-5   Tourist refund scheme  

    Exporting wine as accompanied baggage

    (1)  
    If:


    (a) you have *borne wine tax on wine that you purchased; and


    (b) the purchase is of a kind specified in the regulations; and


    (c) you leave the indirect tax zone, and export the wine from the indirect tax zone as accompanied baggage, in the circumstances specified in the regulations;

    the Commissioner must, on behalf of the Commonwealth, pay to you an amount equal to:


    (d) the amount of the wine tax that you have borne on the wine; or


    (e) such proportion of that amount of wine tax as is specified in the regulations.

    Resident of external Territory sending wine home

    (1A)  


    If:


    (a) you have *borne wine tax on wine that you purchased; and


    (b) the purchase is of a kind specified in the regulations; and


    (c) an amount is payable to you under subsection 168-5(1A) of the *GST Act for the *taxable supply corresponding to the purchase;

    the Commissioner must, on behalf of the Commonwealth, pay to you an amount equal to:


    (d) the amount of the wine tax that you have borne on the wine; or


    (e) such proportion of that amount of wine tax as is specified in the regulations.

    Working out amounts of wine tax borne

    (2)  
    The regulations may specify how amounts of *wine tax borne are to be worked out. Paying the refund

    (3)  


    An amount payable under this section is payable within the period and in the manner specified in the regulations.

    25-10   Purchases later found to be GST-free supplies  

    (1)  
    If:


    (a) you are paid an amount under subsection 25-5(1A) for a purchase; and


    (b) the supply corresponding to the purchase is or becomes a *GST-free supply;

    you become liable to repay the amount (the recoverable amount ) to the Commonwealth on the later of the following days (the due day ):


    (c) the day you were paid the recoverable amount;


    (d) the day the supply becomes a GST-free supply.

    (2)  
    You are liable to pay general interest charge on the whole, or any part, of the recoverable amount that remains unpaid after the due day for each day in the period that:


    (a) starts on the due day; and


    (b) finishes at the end of the last day at the end of which any of the following remains unpaid:


    (i) the recoverable amount;

    (ii) general interest charge on any of the recoverable amount.

    Part 6 - Miscellaneous  

    Division 27 - Miscellaneous  

    27-1   27-1   Application of this Act to cider, perry, mead and sake  
    (Repealed by No 176 of 1999)

    27-5   Wine tax must be specified on invoice for wholesale sales  

    (1)  
    If you sell wine by *wholesale at a *price that includes wine tax that you have or will become liable to pay on the wine, you must specify the amount of the tax on any invoice given to the purchaser.

    (2)  


    You commit an offence if you contravene this section.

    Penalty: 20 penalty units.

    Note 1:

    Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

    Note 2:

    See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

    27-10   Alteration of wine tax liability or wine tax credit if affected by non-arm's length transaction  

    (1)  
    This section applies to you if:


    (a) you (or your *associate) has been a party to a non-arm's length transaction; and


    (b) if the transaction had instead been an arm's length transaction, it would have been the case (or could reasonably be expected to have been the case) that:


    (i) your liability to wine tax on the non-arm's length transaction, or any other transaction, would have been *increased; or

    (ii) your entitlement to a *wine tax credit in connection with the non-arm's length transaction, or any other transaction, would have been *reduced.

    (2)  
    The liability or *wine tax credit is taken always to have been the amount that it would have been (or could reasonably be expected to have been) if it had been based on an arm's length transaction instead of on the non-arm's length transaction.

    27-15   Apportionment of global amounts  

    (1)  
    If there is a need to know the *price for which particular wine was sold, but the parties have not allocated a particular amount to the wine, the price for which the wine was sold is (for the purposes of the *wine tax law) the price for which the wine could reasonably be expected to have been sold if it had been sold separately.

    (2)  
    Similarly, if there is a need to know how much of a global amount relates to some other element of a transaction, but the parties have not allocated a particular amount to that element, the amount to be allocated to that element (for the purposes of the *wine tax law) is the amount that could reasonably be expected to have been allocated to that element if that element had been the only subject matter of the transaction.

    27-20   Commonwealth etc. not liable to pay wine tax  

    (1)  


    The Commonwealth and *untaxable Commonwealth entities are not liable to pay wine tax payable under this Act. However, it is the Parliament's intention that the Commonwealth and untaxable Commonwealth entities should:


    (a) be notionally liable to pay wine tax payable under this Act; and


    (b) be notionally entitled to *wine tax credits arising under this Act.