The Winemakers’ Federation of Australia (WFA) has welcomed the release of the exposure draft legislation to reform the Wine Equalisation Tax (WET) rebate.

"The Australian wine industry, a significant contributor to the Australian economy, employing thousands of Australians in regional and rural communities, has fought long and hard for reform of the WET rebate eligibility criteria," said Tony Battaglene, WFA Chief Executive. "The WET reforms announced last year have gone a long way to restoring integrity in the tax system, and once implemented will allow this very important sector to continue to grow and deliver benefits to rural and regional Australia."

WFA will now study the draft legislation closely and work with the government to iron out any potential issues.

"We are delighted the government has recognised the importance of the wine sector to Australia," Battaglene added. "The WET legislation recognises the unique and valuable role the wine sector plays in the Australian economy. The legislative changes improve the integrity of the system and are vital to the success of the wine sector and its profitability. Our contribution to regional Australia and exports through wine producers who build brands, invest in regional communities and create local jobs is significant.

"Once implemented the legislative changes will put an end to uncertainty and put the industry in a stronger long-term position."

The WFA noted that the bedding down of these changes, along with the new $100,000 Wine Tourism and Cellar Door grant, and the $50 million Export and Regional Support Package, will ensure that the Australian wine industry continues to deliver economic and social benefits in their regions.

Government seeks comment on draft legislation

Interested parties are invited to comment on the exposure draft legislation.

From July 1, 2018, eligible producers will be required to own at least 85% of the grapes used to make the wine throughout the winemaking process. The rebate will be limited to wine branded with a registered trademark, and packaged in a container not exceeding five litres for domestic retail sale. In addition, wine producers will need to better link their rebate claims to the wine tax being paid. The WET rebate cap will also be reduced from $500,000 to $350,000 from July 1, 2018.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted. Closing date for submissions: Friday, 28 April 2017.

Address written submissions to:

Manager

Indirect Tax and Not-for-profit Unit

Individuals and Indirect Tax Division

The Treasury

Langton Crescent

PARKES ACT 2600

Email: WETrebate@treasury.gov.au

For enquiries, call David Pullen on (02) 6263 3941.

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