The Government will ask the Treasury to prepare a discussion paper on the operation of the Wine Equalisation Tax (WET) rebate to help inform consideration of the issue as part of the Tax White Paper process.
Growers and producers have raised concerns whether the current operation of the WET rebate is continuing to meet the original policy intent. The rebate was introduced on 1 October 2004 to replace the cellar door rebate scheme. It provides small and medium sized wine producers with a rebate of WET payable up to a maximum of $500,000 a year. This assistance also supports tourism and industry development in regional Australia.
The discussion paper will be released in July and will form part of the Government’s Tax White Paper process which is examining how we can create a tax system that supports higher economic growth and living standards, improves our international competitiveness and adjusts to a changing economy and new opportunities.
The Government appreciates the strong interest in reform in this area and will look to bring forward options for consideration before the conclusion of the Tax White Paper process.