The new WET legislation will be enacted from the 2018 vintage, so wine producers need to be aware of their obligations now.
South Australian wine industry legal specialists, Finlaysons, have identified the key issues around the reform which are summarised below:
1. New eligibility criteria for claiming producer rebates and new quoting/WET credit rules will apply to the 2018 vintage.
2. New 85% ownership requirement will apply to 2017 and earlier vintages sold after 30 June 2023.
3. Grapes purchased on a ‘retention of title’ basis will not satisfy the 85% ownership requirement.
4. Supply chains involving multiple wholesalers may prevent producers claiming the rebate.
5. Pooling of grapes will also likely prevent producers claiming the rebate.
Details around each of these points are contained in the document link here.
Producers seeking further assistance can get in touch with Tax and Revenue Partner at Finlaysons, Matthew Brittingham on 08 8235 7458.
Further information is also available at WFA website here