The Federal Government announced its reforms to the Wine Equalisation Tax (WET) rebate on Friday December 2.
“Reforms to the WET rebate system were announced in the 2016 budget and the Queensland Wine Industry Association (QWIA) has been actively involved in the consultation process to obtain a fair and equitable outcome for our industry. Driven by Minister Ruston, the consultation process demonstrated the Government’s willingness to listen to industry concerns and deliver a positive outcome. Today’s announcement by the Federal Government will put an end to the uncertainty surrounding the reforms,” Nicholas Pesudovs, QWIA President said.
“QWIA is pleased that the Government has reconsidered its decision to reduce the WET rebate cap from $500,000 to $290,000, instead the cap will reduce to $350,000. Importantly, the
Government announced a deferral of the rebate reduction until 1 July, 2018, which will allow affected Queensland producers time to adjust. This rebate is critical in supporting jobs throughout
rural and regional communities, as well as future investment and growth in our industry.”
“There has been a need to return integrity to the WET rebate and during the consultation process we worked hard to tighten the eligibility definitions which were struggling to deliver what was
initially intended. These revised eligibility criteria strengthen the industry by recognising alternative business models including emerging wine producers and promotes investment at the local level.”
“In addition, the Government announced a $100,000 grant scheme, which focusses investment in cellar doors. This scheme will be a strong contributor to regional growth and is a welcome and positive outcome for small and medium wine producers which are the backbone of the Queensland wine industry.”
“Overall, the $350,000 rebate cap, tightened eligibility and the $100,000 grant scheme are significantly better outcomes than what were proposed in the 2016 Federal Budget and the Queensland Wine Industry Association looks forward to working on the future of our industry.”
The WET imposes a 29 per cent tax on wine products, seperate to the GST and the capped rebate is used by the industry to reinvest in their businesses to create growth and jobs in rural and regional Queensland.