Wine Equalisation Tax
Wine Equalisation Tax (WET) is a tax on wine levied at the rate of 29%. The tax is paid on the value of the wine at the last wholesale sale, or an equivalent value when there is no wholesale sale.
WET affects wine manufacturers and wholesalers. Retailers do not have a WET liability except in the circumstance that they make their own wholesale of wine.
Generally, WET is included in the price that retailers such as bottle shops and restaurants pay to purchase the wine. The retailer is not entitled to claim back the cost of the WET, as the wet is built into the price that the retailer pays, and is then passed onto the consumer.
The commonwealth producer rebate is a rebate of 14% on the wholesale value of eligible rebatable dealings on which WET has been paid. Eligible rebatable dealings include cellar door and mail door order retail sales, wine used for tastings and promotions, and other applications to own use, but does not include wholesale sales.
See the ATO website for more information on the Wine Equalisation Tax, and for instructions about filling out the WET section of the Activity Statement.
Quest Chartered Accountant, North Sydney
