Wine Equalisation Tax (WET) Flashcards Preview

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Flashcards in Wine Equalisation Tax (WET) Deck (9)
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1
Q

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

A

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

2
Q

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

A

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

3
Q

What tax do wine producers have to pay?

A

Producers must pay GST on top of WET.

4
Q

What type of tax is WET?

A

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

5
Q

Who does WET apply to?

A

All domestic and imported wines

6
Q

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

A

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

7
Q

Why was the WET introduced?

A

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

8
Q

What kind of wine does the most damage?

A

Cask wine, low value large volume

9
Q

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

A

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