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Your email address will not be published.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 *

Subscribe to our newsletters

Job vacancies

Sales Executive - Wine and Spirits Awards

The Drinks Business
Central London, UK

On-Trade Channel Manager

Delegat Europe Limited (UK)
London / Midlands, GB

Trade Marketing Analyst

Delegat Europe (UK)
London, GB

Key Account Executive

Delegat Europe Limited (UK)
London / Midlands, GB

Senior National Account Manager

Bibendum PLB
London, UK

ON-TRADE Sales Executive

Roberson Wine
London, UK

OFF-TRADE Sales Executive

Roberson Wine
London, UK

Judging Week Runners

Decanter World Wine Awards
ExCel Centre, London E16, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Retail Commercial Executive

Laithwaite's Wine
Theale, Berkshire

Wine Buyer

Conviviality Plc
Crewe, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Sales Account Manager - On-Trade

Berkmann Wine Cellars
M3/M4 corridor

Media Sales Manager - Hong Kong

The Drinks Business Hong Kong
Hong Kong

Regional Account Manager

New Generation McKinley
London, UK

The Global Merlot Masters 2017

Deadline : 31st March 2017

The Prosecco Masters 2017

Deadline : 10th March 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 3rd March 2017

Click to view more

The Global Sparkling Masters

the drinks business is thrilled to announce the launch of The Global Sparkling Masters

The Global Rosé Masters 2016

the drinks business is proud to announce the launch of the Global Rosé Masters 2016.

The Prosecco Masters 2016

Now in its third year, the competition will reflect the growth in popularity of this fresh and exciting sparkling wine from the picturesque regions of Veneto and Friuli.

The Global Pinot Noir Masters 2016

After the success of last year’s competition that judged over 250 wines from no less than 16 countries, the drinks business is proud to announce the third year of the Global Pinot Noir Masters

Click to view more