NO.035

INCREASE IN WINE EQUALISATION TAX (WET) PRODUCER REBATE

The Government will provide additional support to small and medium sized wine producers through the wine equalisation tax(WET) producer rebate scheme. The enhanced assistance is worth $126 million over the next four years. Wine producers form an important part of regional Australia and provide significant employment and tourism benefits.

The WET producer rebate scheme announced in the 2004-05 Budget provided a WET rebate of up to $290,000 to each wine producer (or group of producers) each financial year. From 1 July 2006, each wine producer (or group of producers) will be able to claim an increased maximum rebateable amount of $500,000 each financial year. The eligibility rules for claiming a WET rebate under the producer rebate scheme will not change.

The enhanced assistance will effectively exempt up to around $1.7 million of domestic wholesale wine sales from WET each year per wine producer (or group of producers), compared to $1 million each year under the current scheme.

CANBERRA
9 May 2006

Contact: David Alexander
(02) 6277 7340