the Wine Equalisation Tax New Zealand Producer Rebate Foreign Exchange Conversion Determination (No. 57) 2016
Reference: WET 2016/57
Document type: Legislative Instrument
Enabling act: A New Tax System (Wine Equalisation Tax) Act 1999
Date of issue: 1 August 2016
Signatory: Timothy Dyce Deputy Commissioner of Taxation
Registration number: F2016L00256
Registration date: 2 August 2016


1. Name of instrument: This determination may be cited as the Wine Equalisation Tax New Zealand Producer Rebate Foreign Exchange Conversion Determination (No. 57) 2016 | 2. Commencement: This instrument is taken to have commenced on the day after it is registered. | 3. Repeal of previous instrument: The following determination is repealed on the commencement of this determination: • Wine Equalisation Tax New Zealand Producer Rebate Foreign Exchange Conversion Determination (No.35) 2016 (the previous instrument) -F2016L00197, registered on 1 March 2016 • Wine Equalisation Tax New Zealand Producer Rebate Foreign Exchange Conversion Determination (No.35) 2016 (the previous instrument) -F2016L00197, registered on 1 March 2016 | 43 Application: This instrument applies to approved New Zealand participants that are required to calculate the approved selling price of their wine in Australian currency, when one or more components of the approved selling price are expressed in a currency other than Australian currency. Note: For approved New Zealand participants, the amount of a Wine Equalisation Tax producer rebate is calculated using the approved selling price of their wine. | 5. Definitions: (1) In this determination: RBA rate means the foreign exchange rate calculated by the Reserve Bank of Australia (RBA) when the New Zealand participant works out the value of the component used to determine the approved selling price on a conversion day: (a) that is an RBA business day, then the RBA rate is the unit of foreign currency per $A calculated by the RBA at 4:00pm Australian Eastern time on that RBA business day, and (b) that is not an RBA business day, then the RBA rate is the unit of foreign currency per $A calculated by the RBA at 4:00pm Australian Eastern time of the previous RBA business day. New Zealand participant's agreed rate means a foreign exchange rate agreed to between the New Zealand participant and the recipient of the wine. The agreed rate only applies for sales made under the agreement and for the period of the agreement applying to the Australian financial year in which the producer rebate is being claimed. conversion day is the date you use to convert foreign currency into Australian currency for wine equalisation tax purposes, and is the earlier of: (a) the day on which any of the consideration is received by the New Zealand participant for the supply of the wine (the receipt date); or (b) the invoice date. RBA business day means a day that the head office of the RBA is open for business Reserve Bank of Australia means the body corporate continued in existence under the Reserve Bank Act 1959. (a) that is an RBA business day, then the RBA rate is the unit of foreign currency per $A calculated by the RBA at 4:00pm Australian Eastern time on that RBA business day, and (b) that is not an RBA business day, then the RBA rate is the unit of foreign currency per $A calculated by the RBA at 4:00pm Australian Eastern time of the previous RBA business day. (a) the day on which any of the consideration is received by the New Zealand participant for the supply of the wine (the receipt date); or (b) the invoice date. (2) Other terms in this determination have the same meaning as in the A New Tax System (Wine Equalisation Tax) Act 1999. | 6. Manner in which the conversion to Australian currency may be made: Option 1 - conversion for components expressed in any foreign currency In working out the value of the component used to determine the approved selling price, you convert the value of the component expressed in a foreign currency (including New Zealand currency) on a conversion day in accordance with the following formula: Value of component expressed in a foreign currency * (1 / the New Zealand participant's particular exchange rate on the conversion day where, • the New Zealand participant's particular exchange rate is the RBA rate or the New Zealand participant's agreed rate, whichever is applicable; and • the conversion day is the date that the foreign currency is converted into Australian currency for wine equalisation tax purposes. Value of component expressed in a foreign currency * (1 / the New Zealand participant's particular exchange rate on the conversion day where, • the New Zealand participant's particular exchange rate is the RBA rate or the New Zealand participant's agreed rate, whichever is applicable; and • the conversion day is the date that the foreign currency is converted into Australian currency for wine equalisation tax purposes. • the New Zealand participant's particular exchange rate is the RBA rate or the New Zealand participant's agreed rate, whichever is applicable; and • the conversion day is the date that the foreign currency is converted into Australian currency for wine equalisation tax purposes. Option 2 - additional option for components expressed in New Zealand currency Where the value of the component used to determine the approved selling price is expressed in New Zealand currency, then in working out the value of that component you have the option of converting the value on a conversion day in accordance with the following formula: Value of component expressed in New Zealand currency ($NZ) * average yearly RBNZ rate where, • average yearly RBNZ rate is as published on the Australian Taxation Office (ATO) website - ato.gov.au; and • the conversion day is the date that the New Zealand currency is converted into Australian currency for wine equalisation tax purposes. You must use your particular exchange rate and conversion option consistently. Value of component expressed in New Zealand currency ($NZ) * average yearly RBNZ rate where, • average yearly RBNZ rate is as published on the Australian Taxation Office (ATO) website - ato.gov.au; and • the conversion day is the date that the New Zealand currency is converted into Australian currency for wine equalisation tax purposes. • average yearly RBNZ rate is as published on the Australian Taxation Office (ATO) website - ato.gov.au; and • the conversion day is the date that the New Zealand currency is converted into Australian currency for wine equalisation tax purposes. You must use your particular exchange rate and conversion option consistently.