Member for Barker Tony Pasin has welcomed vital reforms for the wine industry following the Wine Equalisation Tax (WET) Rebate Reform Legislation passing through Parliament this week.The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, said the Australian Government’s move to tighten eligibility for the rebate followed extensive consultation with the industry.
“Through organisations such as the Winemakers’ Federation of Australia, the industry has made a tremendous contribution in designing and delivering the reforms,” Minister O’Dwyer said.
“Representing an electorate with such a large and varied wine industry, the Member for Barker Tony Pasin has also been an integral part of the reform process. His advocacy for the industry in South Australia should be applauded,” The Minister concluded.
The Treasury Laws Amendment (2017 Measures No. 4) Bill 2017 which passed Parliament this week will tighten eligibility for the rebate.
From 1 July 2018, wine producers will be required to own at least 85 per cent of the grapes used to make the wine throughout the winemaking process and the rebate will be capped at $350,000, down from $500,000.
“These reforms will stop the WET rebate being claimed multiple times on the same wine through the production chain which is what was happening,” Mr Pasin said.
“These reforms will make it a fairer playing field and help prevent routing of the system,” Mr Pasin said.
Transitional arrangements will apply to provide the industry with sufficient time to adjust to the changes.
Australian wine exports are expected to exceed $2.5 billion in 2017-18, with benefits flowing to wine producers as well as regional wine producing communities.
The Australian wine industry contributes $40.2 billion to the Australia economy and creates over 172,000 full and part-time jobs throughout Australia.
The Government is also providing $50 million over four years to the Australian Grape and Wine Authority to promote Australian wine overseas, and providing a new Wine Tourism and Cellar Door grant program that will allow wine producers who have exceeded the rebate cap to access up to an additional $100,000 per financial year on their eligible cellar door sales.
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