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Commonwealth act
The Wine Equalisation Tax (WET) imposes a 29% tax on wine sold in Australia, collected before retail—typically at the last wholesale sale or on imported wine at customs. It applies broadly (grape wine, cider, mead, sake, other fermented fruit/veg) and is reported via BAS.
To prevent double taxation businesses can quote an ABN; small producers can claim a capped rebate. The law chiefly affects producers, importers, wholesalers, retailers and ultimately consumers.
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Direct links to the current provisions in A New Tax System (Wine Equalisation Tax) Act 1999.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
An Act about a tax, relating to certain alcoholic beverages, to implement A New Tax System, and for related purposes
This Act may be cited as the A New Tax System (Wine Equalisation Tax) Act 1999.
This Act commences on 1 July 2000.
(1) The *wine tax law extends to acts, omissions, matters and things outside Australia (within the meaning of the *ITAA 1997) (except where a contrary intention appears). (2) The *wine tax law applies to acts and omissions happening before or after the commencement of this Act (except where there is an express statement to the contrary).
The *wine tax law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence.
This Act is about the wine equalisation tax (or wine tax). The wine tax is a single stage tax applying (in most cases) to dealings in wine at the wholesale level. In almost all dealings to which it applies, the GST will also apply.
Note 1: Wine is widely defined in Subdivision 31‑A. It can apply to beverages fermented from any fruit or vegetable. It also extends to cider, perry, mead and sake.
Note 2: The wine tax is imposed by 3 Acts:
(a) the A New Tax System (Wine Equalisation Tax Imposition—General) Act 1999; and
(b) the A New Tax System (Wine Equalisation Tax Imposition—Customs) Act 1999; and
(c) the A New Tax System (Wine Equalisation Tax Imposition—Excise) Act 1999.
Part 2 sets out the rules that establish the liability for the wine tax. The broad aim of the wine tax law is to tax the last wholesale sale of wine (usually the sale from the last wholesaler to the retailer).
Part 3 is about quoting. The system of quoting is designed to avoid wine tax becoming payable on earlier sales.
Part 4 is about the entitlement to, and claiming of, wine tax credits. The system of wine tax credits deals (among other things) with situations where wine tax has become payable more than once on the same wine.
Part 5 provides for amounts of wine tax, and wine tax credits, to be included in net amounts under the GST system. This has the effect of incorporating the wine tax into the payments and refunds system for the GST. However, the assessed wine tax is paid together with customs duty (where appropriate).
Part 6 deals with miscellaneous matters.
Part 7 contains the Dictionary, which sets out a list of all the terms that are defined in this Act. It also sets out the meanings of some important concepts and rules on how to interpret this Act.
Parts 3‑10, 4‑1 and 4‑15 in Schedule 1 to the Taxation Administration Act 1953 contain provisions relating to the administration of the wine tax, and to collection and recovery of amounts of wine tax.
(1) Many of the terms used in the law relating to the wine tax are defined. (2) Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in “*taxable dealing”. The footnote that goes with the asterisk contains a signpost to the Dictionary definitions starting at section 33‑1.
(1) Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked. (2) Terms are not asterisked in the non‑operative material contained in this Act.
Note: The non‑operative material is described in Division 4.
(3) The following basic terms used throughout the Act are not identified with an asterisk.
<table cellspacing="0" cellpadding="0" style="margin-left:56.7pt; border-collapse:collapse"><thead><tr><td colspan="2" style="width:194.75pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Common definitions that are not asterisked</span></p></td></tr><tr><td style="width:24.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Item</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">This term:</span></p></td></tr></thead><tbody><tr><td style="width:24.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:159.3pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>amount</span></p></td></tr><tr><td style="width:24.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>Commissioner</span></p></td></tr><tr><td style="width:24.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>entity</span></p></td></tr><tr><td style="width:24.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3A</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>indirect tax zone</span></p></td></tr><tr><td style="width:24.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>wine</span></p></td></tr><tr><td style="width:24.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>wine tax</span></p></td></tr><tr><td style="width:24.65pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>7</span></p></td><td style="width:159.3pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>you</span></p></td></tr></tbody></table>
Within a definition, the defined term is identified by bold italics.
In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them. This other material falls into 2 main categories.
One category is the explanatory section in many Divisions. Under the section heading “What this Division is about”, a short explanation of the Division appears in boxed text. Explanatory sections form part of this Act but are not operative provisions. In interpreting an operative provision, explanatory sections may only be considered for limited purposes. They are set out in section 29‑10.
The other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions (except for formulas), but are not kept separate from them.
Liability for wine tax centres around the concept of an assessable dealing. This concept is defined in the Assessable Dealings Table and the sections following the table.
(1) The *Assessable Dealings Table sets out all the *assessable dealings that can be subject to wine tax. (2) If the time of an *assessable dealing (as specified in column 4 of the table) is on or after 1 July 2000, and no exemption applies under Division 7, then: (a) the dealing is a *taxable dealing; and (b) the entity specified in column 3 is the entity liable to the tax; and (c) the tax becomes payable at the time of the dealing, as specified in column 4. However, an assessable dealing (other than a *customs dealing) is a taxable dealing only if the entity specified in column 3 is *registered or *required to be registered.
Note: Under Part 5, amounts of wine tax, on assessable dealings (other than customs dealings), are included in your net amount under the GST system.
(3) To calculate the amount of the tax: (a) determine the *taxable value of the dealing under Division 9; and (b) multiply the result by 29%.
Note: The amount of tax is reduced for some importations (e.g. accompanied baggage of passengers) that are free of customs duty (see section 5‑40).
(4) The table does not apply to a dealing with wine unless the wine is *assessable wine immediately before the time of the dealing, and is in the indirect tax zone at the time of the dealing.
<table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td colspan="5" style="width:356.15pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Assessable Dealings Table</span></p></td></tr><tr><td style="width:44.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Column 1</span></p><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">No.</span></p></td><td style="width:81.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Column 2</span></p><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:8pt; font-weight:bold; vertical-align:3pt">*</span><span style="font-weight:bold">Assessable dealing</span></p></td><td style="width:46pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Column 3</span></p><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-size:8pt; font-weight:bold; vertical-align:3pt">*</span><span style="font-weight:bold">Entity liable</span></p></td><td style="width:46pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Column 4</span></p><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Time of dealing</span></p></td><td style="width:95.65pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Column 5</span></p><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Normal taxable value</span></p></td></tr><tr><td colspan="5" style="width:356.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext" style="page-break-inside:avoid; page-break-after:avoid"><span style="font-weight:bold">Part A—Australian Wine</span></p></td></tr></thead><tbody><tr><td style="width:44.3pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>AD1a</span></p></td><td style="width:81.4pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span style="font-size:8pt; vertical-align:3pt">*</span><span>wholesale sale by an entity that </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>manufactured the wine in the course of any business</span></p></td><td style="width:46pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>seller</span></p></td><td style="width:46pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>time of sale</span></p></td><td style="width:95.65pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>the </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>price (excluding wine tax and </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>GST) for which the wine was sold</span></p></td></tr><tr><td style="width:44.3pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>AD1b</span></p></td><td style="width:81.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span style="font-size:8pt; v
This is an opening excerpt, not the complete document.