|
|
|
Welcome changes to wine tax
22 Jun 2004
The Federal Government has backed down on some planned changes to the wine equalisation tax which would have affected large wineries with high cellar-door sales. The amendments were forced by the Victorian Government after strong lobbying by the wine industry.
In the federal Budget, the first $1 million of every producer's Australian wine sales will be exempted from the 29 per cent WET from October 1. This means 90 per cent of wineries will no longer have to pay WET, as well as receiving an annual rebate of up to $290,000. The move was intended to boost small wineries' cellar-door sales, however it also abolished a 15 per cent state-administered federal rebate on all cellar-door sales worth up to $30 million a year.
The Victorian Treasurer approached the Federal Treasurer when it became clear that the changes meant large wineries would have been $100,000 a year worse off. Mr Costello responded that the application of the 15 per cent cellar-door rebate scheme was up to the states to modify, if they wish to preserve benefits for large wine producers.
The Winemakers Federation of Australia is currently identifying how many wineries have cellar-door sales over $1 million - believed to be well over 300 around the country.
Australian Financial Review, 22/6/04.
|
|
