Tax Laws Amendment (Wine Producer Rebate and Other Measures) Act 2004 (129 of 2004)
Schedule 1 Wine producer rebates
A New Tax System (Wine Equalisation Tax) Act 1999
1 Division 19
Repeal the Division, substitute:
Division 19 - Producer rebates
19-1 What this Division is about
Wine producers are entitled to a rebate for certain dealings in wine. The rebate is provided in the form of a wine tax credit.
Note: Credit ground CR9 is producer rebates.
19-5 Entitlement to producer rebates
You are entitled to a *producer rebate for *rebatable wine for a *financial year if you are the *producer of the wine and:
(a) you are liable to wine tax for a *taxable dealing in the wine during the financial year; or
(b) you would have been liable to wine tax for a dealing in the wine during the financial year had the purchaser not *quoted for the sale at or before the time of the sale.
19-10 Exceptions
(1) You are not entitled to a *producer rebate for a dealing in wine because of paragraph 19-5(b) if the purchaser notifies you at or before the time of purchase that the purchaser intends to make a *supply of the wine that will be *GST-free.
(2) You are not entitled to a *producer rebate for a dealing in wine for which you are liable to wine tax if you have claimed a *wine tax credit, or a wine tax credit subsequently arises for you, for the dealing (except because of a producer rebate).
19-15 Amount of producer rebates
(1) The amount of the *producer rebates to which you are entitled for the wine for the *financial year is:
(a) for *wholesale sales - 29% of the *price (excluding wine tax and *GST) for which the wine was sold; and
(b) for *retail sales and *AOUs - 29% of the *notional wholesale selling price of the wine.
(2) The maximum amount of *producer rebates to which a *producer is entitled for a *financial year is $290,000.
(3) However, if the *producer is an *associated producer of one or more other producers for a *financial year, the maximum amount of *producer rebates to which those producers are entitled as a group for the financial year is $290,000.
19-20 Associated producers
(1) A *producer is an associated producer of another producer for a *financial year if, at the end of that financial year:
(a) the producer would be *connected with the other producer if subsection 152-30(8) of the ITAA 1997 were omitted; or
(b) the producer:
(i) is under an obligation (whether formal or informal); or
(ii) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however communicated) of the other producer in relation to the first producer's financial affairs; or
(c) the other producer:
(i) is under an obligation (whether formal or informal); or
(ii) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however communicated) of the first producer in relation to the other producer's financial affairs.
(2) 2 *producers are associated producers if each of them:
(a) is under an obligation (whether formal or informal); or
(b) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however communicated) of the same third entity in relation to their financial affairs.
(3) A *producer is an associated producer of another producer if:
(a) the first producer:
(i) is under an obligation (whether formal or informal); or
(ii) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however communicated) of a third producer in relation to the first producer's financial affairs; and
(b) the third producer:
(i) is under an obligation (whether formal or informal); or
(ii) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however communicated) of the other producer in relation to the third producer's financial affairs.
19-25 Excess claims
(1) If the sum of the amounts of *producer rebates that you claim for *tax periods during the *financial year exceeds the amount of the *producer rebates to which you are entitled in respect of the financial year, you are liable to pay an amount equal to that excess.
(2) Subsection (3) applies if a *producer is an *associated producer of one or more other producers for a *financial year and the *producer rebates claimed by those producers as a group for the financial year is more than $290,000.
(3) Each *producer member of the group is jointly and severally liable to pay an amount equal to the excess. However, none of the individual producer members is liable to pay an amount that exceeds the sum of the amounts of *producer rebates that that producer claimed for the *financial year.
(4) An amount payable under this section is to be treated as if it were wine tax payable at the end of the *financial year, and, for the purposes of Part 5, were attributable to the last tax period of the financial year.
Note: The main effect of treating the amount as if it were wine tax is to apply the collection and recovery rules in Part VI of the Taxation Administration Act 1953.
19-30 Obligation of purchasers
A person is guilty of an offence if:
(a) the person purchases wine from a *producer and *quotes for the purchase; and
(b) the person intends, at the time of the purchase, to make a supply of the wine that will be *GST-free; and
(c) the person does not notify the producer, in the *approved form, of that intention at or before the time of the purchase.
Maximum penalty: 20 penalty units.
Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.