Regulation impact statement – The Treasury
On 2 December 2016, the Government announced changes to the wine equalisation tax (WET) rebate. On 22 June 2017, the Government introduced the Treasury Laws Amendment (2017 Measures No. 4) Bill 2017 to Parliament.
The Bill amends the A New Tax System (Wine Equalisation Tax) Act 1999 to 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, wine to be packaged in a container not exceeding five litres and branded with a trademark, and rebate claims to be better linked to the WET being paid. The Bill also reduces the rebate cap from $500,000 to $350,000 from 1 July 2018.
The Treasury prepared and certified a Regulation Impact Statement (RIS). The Office of Best Practice Regulation (OBPR) assessed the RIS as compliant and consistent with best practice.
The RIS estimates that this proposal will have an average annual regulatory cost of $135,000.