You are currently viewing the International Edition. You can also switch to the Hong Kong Edition.
Friday 3 July 2015

Australians call for wine tax clampdown

11th July, 2014 by Gabriel Stone

Australian winemakers are calling on their government to close a tax loophole that is allowing competitors in New Zealand to claim around AUD$25 million (£13.7m) in annual rebates.

AustraliaOriginally set up as a tool to support smaller domestic producers, Australia’s wine equalization tax rebate allows winemakers to claim back up to $500,000, based on the wholesale price of their wine.

However, as reported by The Australian, a trade treaty has enabled New Zealand wine producers to access this rebate too, with the paper warning that other exporters to the country may also be eligible if they register for Goods & Services Tax (GST), a 10% levy that is charged on most good or services sold in Australia.

According to the New Zealand Winegrowers Annual Report 2013, Australia represents the country’s largest export market by value, worth NZ$373m (£192m) last year.

Between 2005 and 2012, New Zealand winemakers received AUD$99m, with data for 2011/12 showing that a total of 205 New Zealand claimants received a collective $25m in rebate, a $4m increase on the previous year.

Paul Evans, chief executive of the Winemakers’ Federation of Australia, has previously highlighted this loophole as a key obstacle to the country’s effort to remain competitive in a global marketplace.

Outlining this wider strategy in May, he noted: “This plan recommends responsible reform to the WET rebate to ensure it continues to deliver its original policy intent of supporting small and medium wine businesses and regional communities.”

Arguing that such a step represented “an opportunity for reform the Federal Government must not delay further”, Evans claimed: “Taking this measure alone would provide significant annual savings of at least $25 million to the Commonwealth which could help fund the additional marketing activities we need in the wine sector to re-engage global consumers and recapture market share.”

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

If that's interesting, how about these?

Accolade's Fish Hoek goes Fairtrade

South Africa's Fish Hoek is to go Fairtrade from the 2015 vintage, becoming more...

Australia puts quality centre stage

Wine Australia has pledged to invest AUD$35m annually for the next five years more...

Vinadeis unveils Languedoc 'black diamonds'

One of France’s largest wine producers has launched a high-end Languedoc more...

Wine Buyer

London, United Kingdom

Based on experience

China’s Ningxia region launches wine contest

Select winemakers will have the chance to travel to China to learn from its more...

Pontifex Scholarship 2015 open for entries

Wine Australia and The Daniel Pontifex Memorial Trust have opened the 2015 more...

UK reviewing alcohol intake guidelines

Health officials are to review the government's drinking guidelines, as more...

Social Media Editor

Competitive

Hart Davis Hart biggest in US

Chicago-based wine auctioneer Hart Davis Hart is the market leader in the US in more...

China recognises 'Bordeaux'

China has said it now recognises the term “Bordeaux” as a brand after what more...

Plumpton College principal awarded OBE

Mr Des Lambert, Principal of Plumpton College since 2003, has been awarded an more...

PR Manager

Competitive

Yealands sells majority stake

Yealands Family Wines' owner Peter Yealand has agreed to sell 80% of the more...

Beaujolais pushes for sparkling AOC

Beaujolais is trying to gain AOC status for its sparkling wines which, with it more...

Delegat aims high with new Barossa brand

Oyster Bay owner Delegat has launched “a new global brand” from more...

International Business Development Assistant

London, United Kingdom

To be determined, based on the profile and experience of the candidate

Top wine students receive awards

Students taking degree courses in Wine Business and Wine Production at Plumpton more...

Californian wine struggling with supply

There is a "growing mismatch" between supply and demand that is badly hampering more...

Hardys invests £4m in summer of cricket

Hardys has unveiled a new £4 million consumer marketing campaign to tie in more...

Fire devastates New Zealand winery

A fire has ripped through a New Zealand winery destroying its offices, kitchen more...

Copa América: Malbec vs Carmenère

Saturday sees Chile and Argentina go head-to-head in football’s Copa América more...

Sud de France launches Wine Hub

An "innovative" tool designed to support wine producers and importers operating more...

Sales Executive - Wines & Spirits Competitions

London, United Kingdom

Competitive

Rioja revellers soaked in wine battle

Thousands have taken part in Rioja's annual wine fight, drenching each other more...

Bilingual 'tool' demystifies wine tasting

The Australian Grape and Wine Authority has developed a new "tool" which more...