Producer rebate calculation sheet

If you have chosen to use the calculation sheet, it should be submitted with your Application for payment of wine equalisation tax (WET) rebate form.

You can use the calculation sheet to calculate your producer rebate where the selling price of your wine and expenses unrelated to the production of the wine in New Zealand are expressed in New Zealand currency.

If you are claiming rebates for more than one financial year a calculation sheet should be completed for each financial year.

Next steps

Converting foreign currency

If the figures you use to calculate the producer rebate are not in Australian dollars, you must convert the figures to Australian currency before making your claim.

There are three methods for converting currency depending if you're converting from New Zealand or foreign currency. Whatever method you choose, you must apply the same method consistently during a financial year.

You have two methods for converting foreign currency to Australian currency:

Method 1 – RBA rate
Method 2 – Agreed rate

If you are converting New Zealand currency to Australian currency, there's a third method:

Method 3 – average RBNZ rate

Method 1 – RBA rate

Method 1 uses the Reserve Bank of Australia (RBA) rate. The RBA rate is the exchange rate expressed as a unit of foreign currency per Australian dollar as calculated by the Reserve Bank of Australia.

The following formula may be used for the RBA rate:

Value of component in NZ$ × (1 ÷ the RBA rate on conversion day)

The conversion day is the earlier of:

the day any payment for the supply of wine is received by the New Zealand participant
the invoice date.

Method 2 – agreed rate

This uses the exchange rate that you agreed to with the Australian purchaser for sales of wine. In this case, it is being used to convert New Zealand currency; however, it can be used for other foreign currencies.

The following formula may be used for the agreed rate:

Value of component in NZ$ × (1 ÷ the agreed rate on conversion day)

Method 3 – average RBNZ rate

Method 3 uses the average Reserve Bank of New Zealand (RBNZ) rate. The average RBNZ rate is the exchange rate expressed as a unit of Australian currency per New Zealand dollar for the Australian financial year in which the conversion day occurs.

This method is only available if you're converting New Zealand currency to Australian currency. If you're converting a different currency, you need to use one of the other two methods.

The following formula may be used for the average RBNZ rate:

Value of component in NZ$ × the average RBNZ rate for the Australian financial year of the conversion day

Table 1: The average Reserve Bank of New Zealand exchange rate by Australian financial year
Australian financial year	Average RBNZ exchange rate
2023-24	NZ$1 = A$0.9254
2022-23	NZ$1 = A$0.9153
2021-22	NZ$1 = A$0.9379
2020-21	NZ$1 = A$0.9309
2019-20	NZ$1 = A$0.9487
2018-19	NZ$1 = A$0.9380
2017-18	NZ$1 = A$0.9220
2016–17	NZ$1 = A$0.9448

Example: Calculation of approved selling price

Kiwi Wines Pty Ltd is a wine producer manufacturing wine in New Zealand. Several shipments of wine are sold to an Australian importer during the 2019–20 financial year.

The invoice prices, expressed in NZD, include expenses for freight and insurance to transport the wine to the New Zealand shipping dock.

The importer meets the shipping costs to Australia.

Kiwi Wines invoices the Australian importer for the wine.

Table 2: Kiwi Wines invoice
Invoice date	Invoice amount (NZ$) including shipping costs	Transport costs to shipping dock	Invoice amount (NZ$) excluding transport costs	Date of payment
19 Jul 2019	$26,500	$500	$26,000	21 Aug 2019
13 Sep 2019	$69,000	$1,000	$68,000	21 Oct 2019
04 Dec 2019	$126,000	$2,000	$124,000	21 Jan 2020
06 Apr 2020	$22,500	$500	$22,000	21 May 2020

There are three options for converting the invoice amounts to Australian dollars:

Method 1 – the RBA rate
Method 2 – the agreed rate
Method 3 – the average RBNZ rate

Method 1 – the RBA rate

The invoice date for each sale must be used as the conversion day as the invoice date occurs before the date of payment.

Table 3: RBA exchange rates that apply for a unit of New Zealand currency per Australian dollar
Invoice date	Conversion rate
19 Jul 2019	1.0430
13 Sep 2019	1.0724
05 Dec 2019	1.0464
06 Apr 2020	1.0239

Table 4: Conversion to Australian currency
Invoice date	Invoice amount (NZ$) excluding transport costs	Conversion rate	Invoice amount (A$)
19 Jul 2019	$26,000	1.0430	$24,928.09
13 Sep 2019	$68,000	1.0724	$63,409.18
05 Dec 2019	$124,000	1.0464	$118,501.53
06 Apr 2020	$22,000	1.0239	$21,486.47
Total	$240,000	n/a	$228,325.25

Using Method 1, the resulting total amount in Australian dollars is $228,325.25.

Method 2 – the agreed rate

All sales were made under the same agreement. For the period of the agreement in which the sales were made, the agreed exchange rate for a unit of New Zealand currency per Australian dollar was 1.0703.

Table 5: Conversion to Australian currency
Invoice date	Invoice amount (NZ$) excluding transport costs	Conversion rate	Invoice amount (A$)
19 Jul 2019	$26,000	1.0703	$24,292.25
13 Sep 2019	$68,000	1.0703	$63,533.59
05 Dec 2019	$124,000	1.0703	$115,855.37
06 Apr 2020	$22,000	1.0703	$20,554.98
Total	$240,000	n/a	$224,236.19

Using Method 2, the resulting total amount in Australian dollars is $224,263.19.

Method 3 – the average RBNZ rate

The average RBNZ rate for a unit of Australian currency per New Zealand dollar for the 2018–19 financial year is 0.9487

Table 6: Conversion to Australian currency
Invoice date	Invoice amount (NZ$) excluding transport costs	Conversion rate	Invoice amount (A$)
19 Jul 2019	$26,000	0.9487	$24,666.20
13 Sep 2019	$68,000	0.9487	$64.511.60
05 Dec 2019	$124,000	0.9487	$117.638.80
06 Apr 2020	$22,000	0.9487	$20,871.40
Total	$240,000	0.9487	$227,688.00

Using Method 3, the resulting total invoice amount in Australian dollars is $227,688.00

Option chosen:

Kiwi Wines chooses to use option 1 – the RBA rate– to maximise their rebate claim.

End of example

Converting earlier rebate amounts

You are not entitled to claim the producer rebate for dealings with wine until after the end of the financial year in which the dealing was made and WET was paid. However, for the purposes of notifying a purchaser of your rebate entitlement you are deemed to be entitled to the producer rebate before this time.

You must use Method 1 to determine your approved selling price in Australian currency if:

you notify a purchaser of your rebate entitlement before being able to make your rebate claim
any component of the approved selling price is not expressed in Australian currency.

The RBA rate you must use is the rate on the earlier of the date you either:

received any consideration from the purchaser for the wine
issued the invoice to the purchaser.