Private ruling: Classification of wine based products
Date of advice: 23 August 2019
Published: October 2019
Ruling period: 23 August 20XX to 23 August 20XX
Date scheme commenced: 23 August 20XX

Ruling: Q1: Is your product a grape wine product as defined in the A New Tax System (Wine Equalisation Tax) Act 1999 (the WET Act)? | A1: Yes

Relevant facts and circumstances: Your product will contain a grape wine base, which will comprise at least 70% of the final product. Your product contains other ingredients, none of which contain ethyl alcohol. The final alcohol by volume (a/v) of your product will be 11%.

Relevant legislative provisions: A New Tax System (Wine Equalisation Tax) Act 1999 Subdivision 31-A | A New Tax System (Wine Equalisation Tax) Act 1999 Section 31-3

Reasons for decision: Summary: Grape wine product is defined in section 31-3 of the WET Act. It is also subject to certain requirements as specified in regulation 31-3.01 of the WET Regulations. A grape wine product, taking into account the requirements of both the WET Act and the WET Regulations, is a beverage that: · contains at least 700 millilitres of grape wine per litre; and · has not had added to it, at any time, any ethyl alcohol from any other source, except: · grape spirit; or · alcohol used in preparing vegetable extracts (including spices, herbs and grasses); and · contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol; and · has not had added to it the flavour of any alcoholic beverage (other than wine), whether the flavour is natural or artificial. | Detailed Reasoning - Contains at least 700 millilitres of grape wine per litre: Your product will contain at least 700mls of grape wine (as defined under section 31-2 of the WET Act) per litre. | Detailed Reasoning - Has not had added to it, at any time, any ethyl alcohol from any other source: In addition to the grape wine, your product will contain flavour and colour. None of these additions contain ethyl alcohol. | Detailed Reasoning - Contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol: Your product will contain more than 8% a/v and less than 22% a/v. This falls within the acceptable range for a grape wine product. | Detailed Reasoning - Has not had added to it the flavour of any alcoholic beverage (other than wine), whether the flavour is natural or artificial.: The requirement that the flavour of an alcoholic beverage other than wine must not be added is broad and includes the addition of the flavour of an alcoholic beverage on its own, as well as the addition of number of flavours that combine to produce the flavour of an alcoholic beverage other than wine (ATO Interpretative Decision 2011/5). Therefore, alcoholic beverages that contain flavours such that the beverage mimics a spirit or spirit based beverage, will not meet the definition of grape product. Your product does not contain the flavour of an alcoholic beverage other than wine.