The Assistant Treasurer David Bradbury today announced continued consultation on a 2012-13 Budget measure to protect the integrity of the wine equalisation tax (WET) rebate.
The measure was announced as part of the 2012-13 Budget in response to concerns raised by the wine industry and the Australian Taxation Office over the exploitation of the WET rebate.
"These reforms will help protect the integrity of the wine producer rebate, which provides valuable support to winemakers across Australia" said Mr Bradbury.
"However, currently the rebate is undermined by a loophole that allows producers to claim multiple rebates for the same quantity of wine, beyond the total amount of WET payable.
"These reforms have been welcomed by the Winemakers' Federation of Australia, and we have been consulting closely with industry on their implementation."
Feedback from the wine industry on the draft legislation highlighted a number of areas where further consultation may help ensure a smooth transition to the new arrangements.
This measure was to apply to assessable dealings from 1 July 2012. However, to allow further consultation on the implementation of this measure, the Government will be delaying the start date, with legislation to be introduced later this year.