Presentation Heading Subheading

Wine Equalisation Tax

WET WET is usually payable if you are registered for GST and you are a: wine producer Wine wholesaler or Wine importer ** Must have a WET account with ATO

WET Wine equalisation tax is a tax on the value of wine for consumption within Australia. It applies to : Wholesale sales of wine Some retail sales (eg cellar door) Imported wine for consumption Wine applied for a persons own use (eg wine tastings & promotional giveaways)

WET WET is usually payable if you are registered for GST and you are a: wine producer Wine wholesaler or Wine importer ** Must have a WET account with ATO

WET is payable on an ASSESSABLE DEALING involving ASSESSABLE WINE.

WET An ‘assessable dealing’ is an act, event or transaction involving ‘assessable wine’ ‘Assessable wine’ includes Australian and imported wine and WET applies when they contain more than 1.15% by volume of ethyl alcohol

WET Examples of ‘wine’ Grape wine (including sparkling and fortified) Grape wine products (eg marsala) Fruit wines or vegetable wines Cider, perry, mead and sake

WET does not apply to the following: Beer Spirits Liqueurs Pre-mixed spirits Ready-to-drink designer drinks ATO decision table to determine if WET applies : http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/00234529.htm&page=15&H15

WET WET generally applies to the last wholesale sale of wine. A wholesale sale is a sale to an entity that intends to re-sell the wine WET is calculated before the GST is calculated WET generally is 29% of the wholesale sales value of the wine. Exceptions – retail sales and applied to persons own use

WET Exemptions to WET: The wine will be used as a material in manufacture (eg used in baking a cake) The wine will be GST-free (eg exported or used in hospitals, religious services or educational courses)

WET Calculation example for a wholesale sale: A winemaker sells grape wine to a wholesaler for $120 a dozen before tax. Sales price $120.00 WET ($120 x 29%) 34.80 Sub Total $154.80 GST ($154.80 x 10%) 15.48 Total Wholesale price $170.28

WET Calculation of WET for Retail sales 2 methods 1. Half retail price method 2. Average wholesale price method

Example - half retail price method A winemaker makes a retail sale of grape wine at the cellar door for $140 a dozen, including WET and GST. Taxable value: $140 x 50% = $70.00 WET payable: $70.00 x 29% = $20.30

Half retail price method To calculate the notional wholesale selling price (that is, taxable value) on retail sales of wine 1. work out 50% of the retail price (including WET and GST) of those sales and 2. then multiply that amount by 29%.

Wine Producer Rebate Producers are entitled a rebate of 29% of the wholesale value of eligible domestic sales. Must be the producer to be eligible Rebate scheme applies to all products subject to WET Maximum rebate for a wine producer $500,000 pa

WET & Rebate Reporting – BAS WET – label 1C Rebate – label 1D