Wine Equalisation Tax Ruling WETR 2009/2A4







Wine equalisation tax: operation of the producer rebate for other than New Zealand participants: Please note that the PDF version View the consolidated version for this notice. | Addendum: This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953 . It amends Wine Equalisation Tax Ruling WETR 2009/2 for legislative updates. | WETR 2009/2 is amended as follows: | 1. Table of Contents: Omit the Table of Contents; substitute: | Summary  what this Ruling is about | Who is eligible for the producer rebate? | Producer of rebatable wine | Example 1  manufacture from grapes | Example 2  manufacturing and bottling | Example 3  manufacture by blending own wine with purchased wine | Example 4  blending wine with grape juice concentrate | 'Producer' of wine  contract manufacture | Eligible sales and applications to own use | Example 5  liability for WET | Example 6  sold under quote where subsequent dealing is taxable | Example 7  sold under quote where purchaser's dealing is not taxable | Source product  85% ownership rule | Example 8  ownership of source product at all times | Example 9  retention of title clause | Source product  deeming provisions | Example 10  grape juice concentrate more than 10% of total volume of wine | Example 11  purchased grape pulp does not satisfy the ownership of source product test | Example 12  any other substances  not similar | Example 13  any other substances  similar | Example 14  85% source product ownership rule satisfied | Example 15  85% source product ownership rule not satisfied | Example 16  beverage that falls under the grape wine product definition  85% ownership of source product rule not satisfied | Example 17  grape wine product  85% source product ownership rule not satisfied | 2017 and earlier wine  85% source product ownership rule | Example 18  85% source product ownership rule deemed to be satisfied for 2017 vintage wine | 2017 and earlier fortified wine | Example 19  fortified wine made from blending wines stored immediately prior to 1 January 2018 | Example 20  blend of stored wine, wine produced by the producer after 1 January 2018 and purchased wine | Example 21  fortified wine in a solera system | Container for retail sale | Example 22  container for retail sale  rule satisfied | Example 23  size and not suitable for retail sale | Branded with a trade mark | 'Identifies' or 'readily associated with' you | Example 24  trade mark that identifies the producer | Ownership of the trade mark | Example 25  registered trade mark | Example 26  common law trade mark | Calculating the amount of rebate | Appendix 2  Compliance guide | Claiming the producer rebate | What happens if the producer rebate is claimed when it should not be claimed or when it is over-claimed | Not entitled to the producer rebate | Example 27  entity not a producer of wine | If the producer rebate is over-claimed | 'Excess claim  single producer' | Example 28  single producer excess claim | 'Excess claim  associated producer' | Example 29  associated producer during the year  excess claim | Example 30  associated producer, producer rebate claimed less than excess claim | Impact of volume rebates and discounts | 2. Paragraph 3: (a) Omit 'and all references to the WET Regulations are to the A New Tax System (Wine Equalisation Tax) Regulations 2000 '. | (b) After the paragraph, insert new paragraph 3A: | 3A. From 1 July 2015, the term 'Australia' was replaced in nearly all instances within the goods and services tax (GST), luxury car tax and WET legislation with the term 'indirect tax zone'. The scope of the term, however, remains the same as the now repealed definition of 'Australia' used in those Acts. This change was made for consistency of terminology across the tax legislation, with no change in policy or legal effect. In this Ruling, the 'indirect tax zone' is referred to as 'Australia'. | 3. Paragraph 7: Omit 'goods and services tax (GST)'; substitute 'GST'. | 4. Paragraph 10A: (a) Omit the wording of the paragraph; substitute: | From 1 October 2004, the maximum amount of producer rebates an Australian producer (or group of associated producers) could claim in a full financial year was $290,000. From 1 July 2006, the maximum rebate amount for a financial year was increased to $500,000. From 1 July 2018, the maximum rebate amount was decreased to $350,000. | (b) After the paragraph, insert new paragraph 10B: | 10B. From 1 July 2026, the maximum amount of rebate an Australian producer (or group of associated producers) can claim in a full financial year is $400,000, effectively offsetting WET on approximately A$1.38 million (wholesale value) of eligible sales and applications to own use per year. | 5. Paragraph 16: Omit the wording of footnote 12; substitute: | Sections 31-1, 31-2, 31-3, 31-4, 31-5, 31-6 and 31-7. See also sections 31-2.01, 31-3.01, 31-4.01 and 31-6.01 of the A New Tax System (Wine Equalisation Tax) Regulations 2019 . | 6. Paragraph 27E: Omit ' Chard Pty Ltd '; substitute ' Chard Co '. | 7. Paragraphs 41 and 42: Omit all instances of 'NH Wines Pty Ltd '; substitute ' NH Wines Co '. | 8. Paragraph 43F: Omit the wording of footnote 25C; substitute: | Paragraph 1.16 of Explanatory Memorandum to Treasury Laws Amendment (2017 Measures No. 4) Bill 2017. | 9. Paragraph 57: Omit ' Wines Pty Ltd '; substitute ' Wines Co '. | 10. Paragraphs 58, 61AM, 61AAB, 61AAD and 68D: After 'therefore', insert a comma. | 11. Paragraph 59: (a) Omit all instances of 'Vino Pty Ltd '; substitute ' Vino Co '. | (b) Omit ' Produce Pty Ltd '; substitute ' Produce Co '. | 12. Paragraph 61: Omit the wording of the paragraph (excluding footnote); substitute: | 13. Paragraph 61A: (a) Omit ' Wines Pty Ltd '; substitute ' Wines Co '. | (b) After ' therefore ', insert a comma. | 14. Paragraph 61F: Omit the wording of footnote 31C; substitute: | 15. Paragraph 61G: Omit the wording of footnote 31D; substitute: | 16. Paragraph 61U: Omit the wording of footnote 31I; substitute: | Table 1.2 in Explanatory Memorandum to Treasury Laws Amendment (2017 Measures No. 4) Bill 2017. | 17. Paragraph 61AB: Omit the wording of footnote 31J; substitute: | Paragraph 1.21 of Explanatory Memorandum to Treasury Laws Amendment (2017 Measures No. 4) Bill 2017. | 18. Paragraph 61AC: In footnote 31K, omit 'Appendix 1 of this Ruling'; substitute 'Appendix 1 to this Ruling'. | 19. Paragraph 61AF: Omit the wording of footnote 31L; substitute: | Refer to Goods and Services Tax Ruling GSTR 2003/5 Goods and Services Tax: Vouchers . | 20. Paragraph 61AH: Omit 'dioxide for example are'; substitute 'dioxide, for example, are'. | 21. Paragraph 61AO: (a) After 'therefore', insert a comma. | (b) Omit the wording of footnote 31M; substitute: | Paragraph 1.20 of Explanatory Memorandum to Treasury Laws Amendment (2017 Measures No. 4) Bill 2017. | 22. Paragraphs 61AP, 61AQ, 61AR and 61AS: Omit all instances of 'WeFortify Ltd '; substitute ' WeFortify Co '. | 23. Paragraphs 61AT, 61AU and 61AV: Omit all instances of 'OwnGrape Pty Ltd '; substitute ' OwnGrape Co '. | 24. Paragraph 61AW: Omit ' GWP Ltd '; substitute ' GWP Co '. | 25. Paragraph 61AAF: In footnote 31N, Omit ' Treasury Laws Amendment (2107 Measures No. 4) Act 2017 '; substitute ' Treasury Laws Amendment (2017 Measures No. 4) Act 2017 '. | 26. Paragraph 61AAJ: Omit the wording of footnote 31R; substitute: | Paragraph 1.68 of Explanatory Memorandum to Treasury Laws Amendment (2017 Measures No. 4) Bill 2017. | 27. Paragraph 61AAK: Omit the wording of footnote 31S; substitute: | Subsection 20(5) of the Treasury Laws Amendment (2017 Measures No. 4) Act 2017 . Refer also to Earlier producer rebate amounts . | 28. Paragraph 61AAS: (a) Omit 'characteristics for example will'; substitute 'characteristics, for example, will'. | (b) Omit the wording of footnote 31V; substitute: | Refer to paragraph 1.75 of the Explanatory Memorandum to the Treasury Laws Amendment (2017 Measures No. 4) Bill 2017. | 29. Paragraph 61AAW: Omit the wording of footnote 31W; substitute: | 30. Paragraph 61AAY: In footnote 31X, omit 'of the Treasury '; substitute 'of the Treasury '. | 31. Paragraph 61ABC: Omit the wording of footnote 31Y; substitute: | Refer also to Earlier producer rebate amounts . | 32. Paragraph 61ABE: Omit the wording of footnote 31AC; substitute: | For example, grape wine labels are governed by the Wine Australia Act 2013 and Regulations, the Australia New Zealand Food Standards Code, National Trade Measurement Regulations 2009, the Competition and Consumer Act 2010 and state consumer laws. | 33. Paragraphs 61ABK: Omit the wording of footnote 31AD; substitute: | Paragraphs 19-5(7)(b) to (f) inclusive. | 34. Paragraph 61ABN: Omit the quote; substitute: | … includes the following or any combination of the following, namely, any letter, word, name, signature, numeral, device, brand, heading, label, ticket, aspect of packaging, shape, colour, sound, or scent. | 35. Paragraph 61ABY: Omit the wording of footnote 31AH; substitute: | For further information refer to IP Australia (July 2026) Trade marks , accessed 8 July 2026. | 36. Paragraph 61ACB: Omit the wording of footnote 31AI; substitute: | Paragraph 1.37 of Explanatory Memorandum to Treasury Laws Amendment (2017 Measures No. 4) Bill 2017. | 37. Paragraphs 61ACE, 61ACF and 61ACG: Omit all instances of 'Comon Wines Ltd '; substitute ' Comon Wines Co '. | 38. Paragraph 63B: Omit the wording of footnote 33B; substitute: | Sections 19, 20 and 21 of Treasury Laws Amendment (2017 Measures No. 4) Act 2017 . Refer also to Earlier producer rebate amounts . | 39. Paragraph 63C: (a) Omit the wording of the paragraph (excluding footnote); substitute: | From 1 July 2018 to 30 June 2026, the maximum amount of producer rebate for a financial year is $350,000. The maximum entitlement for associated producers as a group is $350,000 for each financial year. 33C | (b) After the paragraph, insert new paragraph 63D: | From 1 July 2026, the maximum amount of producer rebate for a financial year is $400,000. The maximum entitlement for associated producers as a group from 1 July 2026 is $400,000 for each financial year. | (c) In new paragraph 63D, after 'for each financial year', insert new footnote 33D: | 33D Subsections 19-15(2) and (3). Refer to paragraphs 66 to 66C of this Ruling for a discussion about when producers will be associated. | 40. Paragraph 66: Omit the first list point; substitute: | you are 'connected with' each other (you are connected with each other if you would be 'connected with' each other under section 328 125 of the Income Tax Assessment Act 1997 (ITAA 1997) if subsection 328 125(8) of the ITAA 1997 were omitted36), or | You are an associated producer if each of you is under an obligation (formal or informal), or might reasonably be expected to, act in accordance with the directions, instructions or wishes of the same third entity in relation to your financial affairs. 36B | Further, you (first producer) are an associated producer of another producer (second producer) if you are under an obligation (formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of a third producer and the third producer is under an obligation (formal or informal), or might reasonably be expected, to act in accordance with the directions, instructions or wishes of the second producer in relation to their financial affairs.36C | 43. Paragraph 66C: Omit 'producer(s)'; substitute 'producers'. | 44. Paragraph 66D: Omit the wording of the paragraph; substitute: | This Ruling applies both before and after its date of issue. | 45. Paragraph 66E: (a) Omit the headings; substitute: | (b) Omit 'regulations set out in the'. | (c) Omit 'excise/duty regime'; substitute 'excise or duty regime'. | (d) Omit the table; substitute Table 1 and caption: | Grape wine is a beverage that: | Note: a beverage does not cease to be the product of the complete or partial fermentation of fresh grapes or products derived solely from fresh grapes merely because grape spirit, brandy, or both grape spirit and brandy have been added to it. | A grape wine product is a beverage that: | Grape wine products include (but only where they satisfy the requirements in the column on the left): | Grape wine products do not include: | Fruit or vegetable wine is a beverage that: | Note: a product is only a fruit or vegetable wine after the addition of grape spirit or neutral spirit if that product met the definition of fruit or vegetable wine before the spirit was added. | Fruit or vegetable wines include: | Fruit or vegetable wines do not include: | Cider or perry is a beverage that: | Cider or perry does not include: | Note: If fruit or product derived from fruit is added and it contains concentrated fruit juice or fruit pulp, the proportion of fruit or product in the mead is worked out by assuming that it has been reconstituted according to the recommendations of the manufacturer of the concentrated fruit juice or pulp. | Distilled sake does not satisfy the definition and is not included. | Any subsidy payable by the states or territories, or grant payable by another Federal Government agency (including payments under the Wine Tourism and Cellar Door Grants Program) is claimable from the relevant department or authority. It must not be claimed on the activity statement. | 47. Paragraph 68B: Omit 'amend you net amount'; substitute 'amend your net amount'. | 48. Paragraph 68F: Omit the wording of footnote 37G; substitute: | Section 284-75 of Schedule 1 to the Taxation Administration Act 1953 (TAA) and section 298-20 of Schedule 1 to the TAA. | 49. Paragraph 69: In the heading, omit 'What happens if'; substitute 'If'. | 51. Paragraph 69B: (a) Omit the wording of footnote 39B; substitute: | (b) After '(for example', insert a comma. | 52. Paragraph 70A: Omit the wording of the paragraph (excluding footnotes); substitute: | 53. Paragraph 70E: Omit all instances of '$350,000'; substitute '$400,000'. | 54. Paragraph 70F: (a) Omit all instances of '$350,000'; substitute '$400,000'. | (b) Omit '$550,000'; substitute '$600,000'. | (c) Omit '$900,000'; substitute '$1 million'. | (b) Omit all instances of '$550,000'; substitute '$600,000'. | 56. Paragraph 70H: Omit 'tax period(s)'; substitute 'tax periods'. | 57. Paragraph 73: Omit the paragraph, including heading. | This Addendum applies from 1 October 2019 (in relation to changes that reference A New Tax System (Wine Equalisation Tax) Regulations 2019) and from 1 July 2026 (in relation to changes made by the A New Tax System (Wine Equalisation Tax) Act 1999 by the Treasury Laws Amendment (Supporting Choice in Superannuation and Other Measures) Act 2026) . | Commissioner of Taxation 29 July 2029