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Wineries sour over tax
21 May 2004
Hundreds of medium-sized wineries could lose thousands of dollars in rebates from cellar door sales following changes to the Wine Equalisation Tax. The Victorian Treasurer, John Brumby, says medium-sized wineries with a high proportion of cellar door sales will be worse off under the wine tax changes announced in the federal Budget last week.
The industry supported proposed changes to WET, as they provide a boost for smaller wineries to grow their cellar door sales. About 90 per cent of wineries will benefit. But wineries such as All Saints in Rutherglen estimate they will be more than $100,000 a year worse off, with others like Brown Brothers and Tahbilk also affected.
Many medium-sized and larger wineries will suffer because the tax changes include the abolition of a 15 per cent state-administered federal subsidy.
The wine industry says the removal of the 15 per cent rebate begins to erode the gains from the new scheme as sales rise, and wipes out the benefits once turnover reaches $2 million.
Mr Brumby said the 15 per cent subsidy for cellar door sales over $1 million should be retained to ensure no winery is worse off under the changes. The campaign is supported by the Winemakers' Federation of Australia and other state-based organisations.
Australian Financial Review, 20/5/04.
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