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Edited version of private advice

Authorisation Number: 1051842570711

Date of advice: 21 May 2021

Ruling

Subject: GST and wine equalisation tax

The Commissioner was asked numerous questions relating to relating to Goods and Services Tax (GST) and Wine Equalisation Tax (WET).

Question 1

Will subdivision 153-B of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) apply to the proposed arrangement between you and another entity?

Answer

Yes, subdivision 153-B of the GST Act will apply to your proposed arrangement.

Question 2

Will you and the other entity be associated producers under section 19-20 of A New Tax System (Wine Equalisation Tax) Act 1999 (WET Act)?

Answer

No, you and the other entity will not be associated producers under section 19-20 of the WET Act.

Question 3

Will you be entitled to claim the WET producer rebate under section 19-5 of the WET Act under your proposed arrangement?

Answer

Yes, you will be entitled to claim the WET producer rebate under your proposed arrangement.

Question 4

Will you be entitled to claim producer rebate on:

(a)  the price (excluding WET and GST) for which the wine is sold (for wholesale sales); and

(b)  the notional wholesale selling price (for retail sales)

of your wine to third party customers without reduction for commissions paid to, or costs passed on, under the terms of the agreement.

Answer

Yes, you are entitled to use the price (excluding WET and GST) for which the wine was sold (for wholesale sales), and the notional wholesale selling price (for retail sales), without reducing for commissions or costs paid under the terms of the agreement.

This ruling applies for the following period:

21 May 20XX to 20 May 20XX

The scheme commences on:

21 May 20XX

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Subdivision 153-B

A New Tax System (Wine Equalisation Tax) Act 1999 Section 5-5

A New Tax System (Wine Equalisation Tax) Act 1999 Section 19-5

A New Tax System (Wine Equalisation Tax) Act 1999 Section 19-20

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