Wine Equalisation Tax (WET)

Question 1

What was the wine industry like before WET in the mid 80’s?

Answer 1

There was no specific tax on wine. All tax was State imposed Licence Fees (8%-13%)

Question 2

When was WET introduced and what percentage did it gradually increase to?

Answer 2

WET was introduced in 1986 at 10% then gradually increased to 29% in 1999 (GST) where it remains to this day.

Question 3

What tax do wine producers have to pay?

Answer 3

Producers must pay GST on top of WET.

Question 4

What type of tax is WET?

Answer 4

WET is a Value Added Tax (price of wholesale), NOT a Volumetric Tax (volume of bottle)

Question 5

Who does WET apply to?

Answer 5

All domestic and imported wines

Question 6

How much money do small producers turnover, and are they eligible for a rebate?

Answer 6

Small producers earn under $350k and can apply for a rebate

Question 7

Why was the WET introduced?

Answer 7

To combat the ills caused by alcohol abuse. That tax can be used to assist the health department

Question 8

What kind of wine does the most damage?

Answer 8

Cask wine, low value large volume

Question 9

Why is the WET value added, and not based on the alcohol in the package (Volumetric)?

Answer 9

There is a debate on this topic on the amount of ethanol in a package. Say if you have 50c added to each standard drink, you’d have a cask wine which costs 20-30 dollars more than before, and the majority of wines which most people drink would remain the same in price