| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051579280231
Date of advice: 12 September 2019
Ruling
Subject: Classification of wine based products
Question
Is your product a grape wine product as defined in section 31-3 ofthe A New Tax System (Wine Equalisation Tax) Act 1999 (the WET Act)?
Answer
Yes
This ruling applies for the following period:
12 September 2019 - 12 September 2023
The scheme commences on:
12 September 2019
Relevant facts and circumstances
· Your product will contain a grape wine base, which will comprise at least 70% of the final product.
· Your product contains other ingredients - where these ingredients contain ethyl alcohol the source of this alcohol is grape spirit.
· The final alcohol by volume (a/v) of your product will be 8%.
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
A New Tax System (Wine Equalisation Tax) Act 1999 Section 31-2
Reasons for decision
Grape 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 WET Regulations.
A grape wine product, taking into account the requirements of both the WET Act and the WET Regulations, is a beverage that:
· contains at least 700 millilitres of grape wine per litre; and
· has not had added to it, at any time, any ethyl alcohol from any other source, except:
· grape spirit; or
· alcohol used in preparing vegetable extracts (including spices, herbs and grasses); and
· contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol; and
· has not had added to it the flavour of any alcoholic beverage (other than wine), whether the flavour is natural or artificial.
Contains at least 700 millilitres of grape wine per litre
Your product will contain at least 700mls of grape wine (as defined under section 31-2 of the WET Act) per litre.
Has not had added to it, at any time, any ethyl alcohol from any other source
In addition to the grape wine, your product will contain flavours. Where the flavours contain ethyl alcohol, the source is grape spirit which is an allowable additive under the WET Act.
Contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol
Your product will contain at least 8% a/v and not more than 22% a/v. This falls within the acceptable range for a grape wine product.
Has not had added to it the flavour of any alcoholic beverage (other than wine), whether the flavour is natural or artificial.
The requirement that the flavour of an alcoholic beverage other than wine must not be added is broad and includes the addition of the flavour of an alcoholic beverage on its own, as well as the addition of number of flavours that combine to produce the flavour of an alcoholic beverage other than wine (paragraph 16C of Wine Equalisation Tax Ruling 2009/1 (WETR 2009/1) and ATO Interpretative Decision 2011/5).
Therefore, alcoholic beverages that contain flavours such that the beverage mimics a spirit or spirit based beverage, will not meet the definition of grape product.
Your product does not contain the flavour of an alcoholic beverage other than wine.