WET Reform – Federal Budget 2016
The WET producer rebate has survived the May 2016 Federal Budget but will be removed from bulk wine and phased down to $290,000 per annum.
Much stricter eligibility criteria will also apply from 1 July 2019 onwards.
Following the Senate Report on the Australian Grape and Wine Industry (February 2016), the WET producer rebate looked dead and buried.
However, overnight the Treasurer has breathed life back into the rebate with the release of the 2016 Budget.
In short, the WET rebate will survive going forward but the annual rebate “cap” will be reduced from $500,000 to $350,000 from 1 July 2017, and to $290,000 from 1 July 2018.
In addition, from 1 July 2019 the eligibility criteria for claiming the rebate will be tightened, and the rebate will be removed from bulk and unbranded wine from 30 June 2019.
Although the Government will be consulting with the industry on the finer details, it appears that a wine producer will also need to own a winery, or have a long-term lease over a winery, in order to claim the rebate.
Finlaysons will of course keep you posted with further developments.
This Alert is intended as an alert only. It does not purport to be comprehensive advice. Readers should seek professional advice before acting in relation to these matters.