1. Presentation Heading
Subheading

2. Wine Equalisation Tax

3. 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

4. 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)

5. 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

6. WET is payable on an ASSESSABLE DEALING involving ASSESSABLE WINE.

7. 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

8. 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

9. 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 :

10. 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

11. 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)

12. 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%)
Sub Total $154.80
GST ($ x 10%)
Total Wholesale price $170.28

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

14. 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

15. 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%.

16. 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

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