T
he federal government has ended the ‘gaming’ of wine industry assistance with cuts to rebates and tightening of eligibility for the Wine Equalisation Tax (WET) rebate.
The rebate will be cut from its current $500,000 to $350,000 by July 1, 2017 and further to $290,000 a year later.
Wine producers wanting to claim the rebate will also have to own a winery or have a long-term lease on one, and sell packaged, branded wine domestically under new eligibility criteria.
The Winemakers Federation of Australia has long called for reform of the WET, and a recent Senate inquiry heard how the system was being rorted by wine cellar door operators and growers who went into wine making so they could claim the rebate.
The burgeoning Australian whisky and gin industries have also received a charge with the extension of an excise refund scheme.
The refund scheme, which returns 60 per cent of excise to distillers, up to a cap of $30,000 per year, will be extended to domestic whisky, gin, vodka, liqueur and some cider producers.
The change will benefit about 100 Australian distilleries, including a number of start-ups in Tasmania.
In other measures, the Australian Wine and Grape Authority will receive $50 million over four years to promote local wines overseas and wine tourism in Australia.
The Winemakers’ Federation of Australia and Wine Grape Growers Australia welcome a $50 million funding injection to grow demand and accelerate recovery of the nation’s grape and wine industry.
Government has responded favourably to industry’s recovery plan which outlined changes to the Wine Equalisation Tax (WET) rebate and a substantial global investment strategy.
Wine Grape Growers Australia Chair Joanna Andrew welcomed government’s support for the grape and wine sector but echoed WFA’s concerns.
“Doing nothing was not an option and government has begun a reform process that we hope will translate into better returns for growers and across the supply chain,” Andrew said.
Both organisations said they would be consulting their members and State and regional associations on these proposals and continue to engage with the government.
