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WINE EQUALISATION TAX REBATE TO IMPROVE INTEGRITY IN CALARE

WINE EQUALISATION TAX REBATE TO IMPROVE INTEGRITY IN CALARE

Federal Member for Calare, Andrew Gee has welcomed the introduction of legislation to improve the integrity of the wine equalisation tax rebate and better target support to small wine producers in the Calare electorate.

Mr Gee said these measures will tighten eligibility for the rebate through the following key improvements:

  • Wine producers being required to own at least 85 per cent of the grapes used to make the wine throughout the winemaking process, which will stop the rebate being claimed multiple times through the production chain.
  • Wine needing to be packaged in a container not exceeding five litres (or 51 litres for cider and perry) and branded with a trademark to remove eligibility from bulk and unbranded wine.
  • Rebate claims being linked to the payment of the wine equalisation tax to prevent schemes where the rebate is being claimed on wine sold into the export market.
  • The rebate cap will also be reduced from $500,000 to $350,000 from 1 July 2018.

“The Coalition Government undertook extensive consultation with the wine industry, which included a visit to Orange by Assistant Minister for Agriculture and Water Resources, Senator the Hon Anne Ruston,” Mr Gee said.

“Our local producers helped to shape key changes to the eligibility criteria which will ensure the rebate is targeted to wine producers who build brands, invest in regional communities and create local jobs,” Mr Gee said.

“Once passed, these changes will be of great benefit to our local wine industry.”

“These changes were called for by the wine industry and are a part of the continuing efforts of the Government to strengthen the integrity of Australia’s tax system,” Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer said.

“The reforms to the rebate form an important part of the Government’s efforts to support a strong and sustainable Australian wine industry,” Assistant Minister for Agriculture and Water Resources, Senator the Hon Anne Ruston said.

The Government is also providing $50 million over four years to the Australian Grape and Wine Authority to promote Australian wine overseas, and introducing a new Wine Tourism and Cellar Door grant program that will provide wine producers who have exceeded the rebate cap up to an additional $100,000 per financial year on their cellar door sales.