December 15, 2016
Federal Member for Gippsland Darren Chester has welcomed tax changes to better support wine producers who invest in their local community and create jobs.
Mr Chester said the Government had enhanced the Wine Equalisation Tax (WET) Rebate to better assist small to medium businesses.
“The Government has listened carefully to industry and tailored packages so wine producers who build brands, invest in regional communities and create local jobs are the beneficiaries of the rebate, not the traders and major retailers,” Mr Chester said.
“These changes will further encourage wine producers across Gippsland to invest in our region and continue to produce a quality wine of which we all can be proud.”
The key changes to the eligibility criteria to protect the integrity of the WET Rebate scheme include:
• eligible producers must own 85 per cent of the grapes at the crusher used to make the wine, and maintain ownership throughout the wine making process;
• the rebate is limited to branded packaged wine in a container not exceeding five litres and branded with a registered trademark for domestic retail sale; and
• the rebate claims must be better linked to the WET being paid.
The new eligibility criteria will apply from July 1, 2018.
The rebate cap will be reduced from $500,000 to $350,000 from 1 July 2018, which is a year later and a higher cap than announced in the 2016 budget.
The Government has also announced a new Wine Tourism and Cellar Door grant scheme to provide up to $100,000 per annum to producers who exceed the $350,000 rebate cap.
The eligibility criteria to qualify for the new grant will be finalised following consultation with the wine industry.