Anna Chong discusses the recent Wine Equilisation Tax (WET) rebate changes effective from 1 July 2018.
After two years of consultation with the wine industry, the Treasury Laws Amendment (2017 Measures No4) Bill 2017 received Royal Assent on 23 August 2017 to:
The amendments will be effective from 1 July 2018.
Broadly, under the new law, to be entitled to the producer rebate (amongst other criteria):
To ensure WET is ultimately paid in circumstances where a producer has claimed the WET rebate, WET will be payable at each stage of the supply chain (instead on the last wholesale sale only) unless the wine is:
Further, seven existing grounds for a WET credit will be removed. The Australian Taxation Office (ATO) will update the existing public WET rulings to reflect these changes in late October which should provide more guidance on the application of the new law.
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