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Wine tax win
11 May 2004
Taxes on wine will be reduced by more than $250 million in today's Federal Budget. The wine equalisation tax will be cut over four years, worth $56 million in the first year, rising to $80 million in the fourth year. It's believed the cuts will be in the form of an exemption for wineries producing fewer than 200,000 litres a year.
South Australian Liberals, including some of SA's four Cabinet ministers, have strongly backed an industry campaign to cut the 29 per cent wholesale tax. The value-based WET, introduced in 2000, applies to bottled and cask wine, and raises about $700 million annually.
SA has 432 wineries and the industry supports about 34,000 jobs. The tax cut is expected to restore margins and promote investment and tourism in regional areas.
The Australian, 11/5/04.
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