Edited version of your written advice

Authorisation Number: 1013008252905

Date of advice: 10 May 2016

Ruling

Subject: Wine product

Question 1

Is your product a specific wine product for the purposes of the A New Tax System (Wine Equalisation Tax) Act 1999 (WET Act)?

Answer

Yes

This ruling applies for the following periods:

1 January 20xx - 1 January 20yy

The scheme commences on:

1 January 20xx

Relevant facts and circumstances

• You are registered for goods and services tax (GST) and the wine equalisation tax (WET).

• You produce an alcoholic beverage and have provided details of the ingredients and the production process.

• The product has a final alcoholic strength over 8% alcohol by volume (ABV).

Relevant legislative provisions

A New Tax System (Wine Equalisation Tax) Act 1999 Subdivision 31-A

A New Tax System (Wine Equalisation Tax) Act 1999 Section 31-3.

Reasons for decision

Wine is defined in section 33-1 of the WET Act as having the meaning given by Subdivision 31-A of the WET Act.

Section 31-1 in Subdivision 31-A of the WET Act provides that wine means any of the following:

• grape wine;

• grape wine products;

• fruit or vegetable wine;

• cider or perry;

• mead;

• sake.

However, wine does not include beverages that do not contain more than 1.15% by volume of ethyl alcohol.

All of the beverages set out above are separately defined for the purposes of the WET Act and, of these definitions, 'your specific wine product' is the only definition that is relevant in these circumstances.

Wine product

Your wine product is defined in section 31-3 of the WET Act. It is also subject to certain requirements as specified in regulation 31-3.01 of the A New Tax System (Wine Equalisation Tax) Regulations 2000 (WET Regulations).

Your wine product, taking into account the requirements of both the WET Act and the WET Regulations, is a beverage that:

(a) contains at least 700 millilitres of grape wine per litre; and

(b) has not had added to it, at any time, any ethyl alcohol from any other source, except:

a. specific spirit; or

b. alcohol used in preparing vegetable extracts (including spices, herbs and grasses)

i. this alcohol is only used to extract the flavours from the vegetable matter but is not essential to the extraction process; and

ii. must not add more than one percentage point to the strength of alcohol by volume of the beverage; and

(b) contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol; and

(c) has not had added to it the flavour or any alcoholic beverage (other than wine), whether the flavour is natural or artificial.

Each element of the definition will be considered in turn:

Contains at least 700 millilitres of specific wine per litre

The specific wine is defined in section 31-2 of the WET Act and is subject to the requirements of regulation 31-2.01 in the WET regulations.

Your wine, taking into account the requirements of both the WET Act and the WET Regulations, is a beverage that:

(a) is the product of the complete or partial fermentation of fresh grapes or products derived solely from fresh grapes; and

(b) contains no more than 22% by volume of ethyl alcohol.

Based on the formula you have provided, we consider the final product contains more than 70% (700 millilitres per litre) specific wine.

Has not had added to it, at any time, any ethyl alcohol from any other source

None of the additives in your product contain ethyl alcohol.

We accept there has not been any ethyl alcohol added from any other source.

Contains at least 8%, but not more than 22%, by volume of ethyl alcohol

The final alcohol strength of the product is X% ABV, therefore this condition is met.

Added flavour of an alcoholic beverage

None of the additives in your product are considered to be the flavour of an alcoholic beverage.

Given all elements have been met, we consider your product to be a specificwine product under s31-3 of the WET Act.