5-30   Local entry of imported wine (AD10)  

(1)    
The Local Entry Table sets out the situations that amount to a local entry of *imported wine for the purposes of the *wine tax law. The rest of this section deals with situations involving the withdrawal of a customs entry, or multiple local entries of the same wine.

(2)    
The withdrawal of the customs entry underlying a formal local entry (the earlier local entry ) usually has the effect that the earlier local entry is taken never to have happened. However, if:

(a) there is a later formal local entry after the withdrawal; and

(b) the tax on that later entry would be less than the tax on the earlier local entry;

then the earlier local entry is taken never to have been extinguished and the later entry is taken never to have happened.

(3)    
If a formal local entry happens after a deemed local entry, the formal local entry is taken never to have happened.

(4)    
If a deemed local entry happens after a formal local entry, the formal local entry is taken never to have happened.

(5)    

In this section:

customs entry
means an entry for home consumption under the Customs Act 1901.

deemed local entry
means a local entry that is not a formal local entry.

formal local entry
means a local entry covered by *LE1 or *LE2 in the Local Entry Table.

Local Entry Table
Column 1	Column 2	Column 3
No.	Situation giving rise to local entry	*Entity to be regarded as making the local entry
LE1	the wine is taken to have been entered for home consumption under subsection 71A(7) of the Customs Act 1901	owner (within the meaning of the Customs Act 1901) of the wine
LE2	the wine is taken to have been entered for home consumption under subsection 71A(8) of the Customs Act 1901	owner (within the meaning of the Customs Act 1901) of the wine
LE3	the wine is delivered into home consumption under section 71 of the Customs Act 1901	entity authorised under section 71 of the Customs Act 1901 to deliver the wine
LE4	the wine is sold under section 72, 87 or 96 of the Customs Act 1901	entity that bought the wine
LE5	the wine is delivered to an entity under section 208 of the Customs Act 1901	entity to which the wine is delivered
LE6	the wine is delivered to an entity under a court order made in an action under the Customs Act 1901 for condemnation or recovery of the wine	entity to which the wine is delivered
LE7	the wine is delivered to an entity under a court order made in an action for a declaration that the wine is not forfeited under the Customs Act 1901	entity to which the wine is delivered
LE8	the wine has been seized under a warrant issued under section 203 of the Customs Act 1901, or under section 203B or 203C of that Act, and is delivered to an entity on the basis that it is not forfeited goods	entity to which the wine is delivered
LE9	delivery of the wine is authorised under subsection 209(6) of the Customs Act 1901	entity to which the wine is delivered or is to be delivered
LE10	a demand is made under section 35A or 149 of the Customs Act 1901 in relation to the wine	entity on which the demand is made
LE11	the wine is treated as entered for home consumption under subsection 96A(12) of the Customs Act 1901	entity treated under section 96A of the Customs Act 1901 as having entered the wine for home consumption
LE12	the wine is taken out of a warehouse under a permission granted under section 97 of the Customs Act 1901 and is not returned to the warehouse before the expiration of the period specified in the permission	entity to which the permission is given
LE13	(Repealed by No 176 of 1999)
LE14	the wine is taken into home consumption in accordance with a permission granted under section 77D of the Customs Act 1901	entity to which the permission is granted
LE14A	the wine is *tradex scheme goods, and any of the circumstances referred to in subsection 21(1) of that Act have occurred in respect of any of the wine	holder (within the meaning of the Tradex Scheme Act 1999) of the *tradex order relating to the wine
LE15	the wine is not covered by any other item in this table but is *imported, and is not entered for home consumption as required under the Customs Act 1901	owner (within the meaning of the Customs Act 1901) of the wine

5-35  

5-35   Time of local entry if wine entered for home consumption before importation  
(Repealed by No 176 of 1999)

5-40  

5-40   Reductions in wine tax for some importations that are free of customs duty  
(Repealed by No 176 of 1999)

5-50   Purchaser quoting on purchase from producer - failure to deal according to quote  

(1)    
This section applies if:

(a) you *purchased wine under quote from the *producer of the wine; and

(b) in your *quote you did not state that you have the intention of dealing with the wine in one of the following ways:

(i) a way described in paragraph 13-5(1)(c) or (d);

(ii) by sale to an entity that will quote for the sale; and

(c) you cause an *assessable dealing with the wine that is a dealing in a way described in subparagraph (b)(i) or (ii).

(2)    
Sections 7-5 (Exemption for dealings that are GST-free supplies etc.) and 7-10 (Exemptions based on quoting) do not apply to the *assessable dealing mentioned in paragraph (1)(c).

(3)    
For the purposes of this Division:

(a) disregard paragraph (g) of the definition of application to own use in section 33-1; and

(b) treat the matter referred to in that paragraph as being an application to own use.

Division 7 - Exemptions  

7-1  

7-1   What this Division is about  

7-5   Exemption for dealings that are GST-free supplies or non-taxable importations  

An *assessable dealing is not taxable if the dealing is:

(a) a *supply that is *GST-free (other than because of Subdivision 38-D (child care) of the *GST Act); or

(b) a *local entry relating to an *importation that is a *non-taxable importation.

7-10   Exemptions based on quoting  

(1)    
A sale is not taxable if the purchaser *quotes for the sale at or before the time of the sale.

(2)    
A *customs dealing is not taxable if the entity that would, apart from this subsection, be liable for the wine tax on the dealing *quotes for the dealing at or before the time of the dealing.

7-15   Exemptions based on Schedule 4 to the Customs Tariff Act 1995  

(1)    

A *customs dealing is not taxable if it is an *importation of wine covered by item 10, 11, 15, 18, 21, 21A, 24 or 27 in Schedule 4 to the *Customs Tariff.

(2)    

To avoid doubt, a reference to wine that is covered by an item in Schedule 4 to the *Customs Tariff includes a reference to goods to which that item would apply apart from the operation of subsection 18(1) of the Customs Tariff Act 1995.

7-20  

7-20   Exemption for local entry if wine has been taxed while in bond  

A *local entry of wine is not taxable if you or anyone else became liable to tax on a previous *assessable dealing with the wine while it was in bond or under customs control under the Customs Act 1901.

7-25   Goods returned to the indirect tax zone in an unaltered condition  

(1)    
A *local entry of wine is not taxable if:

(a) the wine was exported from the indirect tax zone and is returned to the indirect tax zone, without having been subject to any treatment, industrial processing, alteration or any other process since its export; and

(b) the importer was not entitled to, and did not claim, a payment under Division 25 (about the tourist refund scheme) related to the export of the wine; and

(c) the importer:

(i) is the manufacturer of the wine; or

(ii) has previously acquired the wine, and the supply by means of which the importer acquired the wine was a *taxable dealing; or

(iii) has previously imported the goods, and the previous importation was a *taxable dealing.

(2)    
A *local entry of wine is not taxable if:

(a) the importer had manufactured, acquired or imported the wine before 1 July 2000; and

(b) the wine was exported from the indirect tax zone before, on or after 1 July 2000; and

(c) the wine is returned to the indirect tax zone on or after 1 July 2000, without having been subject to any treatment, industrial processing, alteration or any other process since its export; and

(d) the importer was not entitled to, and did not claim, a payment under Division 25 (about the tourist refund scheme) related to the export of the wine; and

(e) the ownership of the wine when it is returned to the indirect tax zone is the same as its ownership on 1 July 2000.

Note:

An importation covered by this section may also be duty-free under item 17 of Schedule 4 to the Customs Tariff Act 1995.

Division 9 - Taxable value  

9-1  

9-1   What this Division is about  

Subdivision 9-A - General rules for working out taxable value  

9-5   How to work out the taxable value of a taxable dealing  

(1)    
The general rules for calculating the taxable value are set out in the *Assessable Dealings Table.

(2)    
In some cases, the *Assessable Dealings Table refers to the *notional wholesale selling price as the *taxable value. Subdivision 9-B sets out how to work out the notional wholesale selling price.

(3)    
In some cases, amounts must be added to the amount set out in the *Assessable Dealings Table. These additions are set out in Subdivision 9-C.

(4)    
In working out the *taxable value of wine, any rebate, refund or other payment or credit made by a State or Territory in respect of the wine is to be disregarded.

9-10   Agreement with Commissioner regarding calculation of taxable value  

(1)    
The Commissioner may enter into an agreement with you about calculating the *taxable values of particular *taxable dealings for which you are liable for the wine tax.

(2)    
So far as the agreement is inconsistent with this Act, the agreement prevails.

Subdivision 9-B - Notional wholesale selling price  

9-25   The 2 methods of working out notional wholesale selling prices for retail dealings with grape wine  

(1)    
There are 2 methods for working out the notional wholesale selling price for a *taxable dealing that is either:

(a) a *retail sale of *grape wine; or

(b) an *AOU connected with retail sales of wine that is grape wine.

(2)    
The *half retail price method is used unless you have chosen under subsection (3) to use the *average wholesale price method.

(3)    
You may choose to use the *average wholesale price method if, during the *tax period in respect of which you are liable to pay wine tax on the dealing, at least 10% by value of all your sales of *grape wine that:

(a) is of the same vintage as the grape wine to which the dealing relates; and

(b) is produced from the same grape varieties, or the same blend of grape varieties, as the grape wine to which the dealing relates;

are *wholesale sales.

9-30  

9-30   Working out notional wholesale selling prices for retail dealings with wine that is not grape wine  
The notional wholesale selling price for a *taxable dealing that is either:

(a) a *retail sale of wine that is not *grape wine; or

(b) an *AOU connected with retail sales of wine that is not grape wine;

is worked out using the *half retail price method.

9-35   The half retail price method  

(1)    
The notional wholesale selling price for a *retail sale of *grape wine, worked out using the half retail price method , is 50% of the *price of the sale.

(2)    
The notional wholesale selling price for an *AOU connected with retail sales of grape wine, worked out using the half retail price method , is 50% of the *price for which you would normally have sold the wine if the sale were a *retail sale.

9-40  

9-40   The average wholesale price method  
The notional wholesale selling price for a *retail sale of *grape wine, or for an *AOU connected with retail sales of grape wine, worked out using the average wholesale price method is the weighted average of the *prices (excluding wine tax and *GST) for *wholesale sales that you have made of grape wine that:

(a) is of the same vintage as the grape wine to which the retail sale or AOU relates; and

(b) is produced from the same grape varieties, or the same blend of grape varieties, as the grape wine to which the retail sale or AOU relates;

during the *tax period in respect of which you are liable to pay wine tax on the retail sale or AOU.

Example:

If, during a tax period, you make 70% of wholesale sales of grape wine of a particular vintage and variety at $80 per dozen, and the remaining 30% at $90 per dozen, the weighted average of the wholesale prices for wholesale sales during the tax period is:

[70% × $80] + [30% × $90] = $83 per dozen

9-45  

9-45   Notional wholesale selling prices for other dealings  
The notional wholesale selling price for a taxable dealing with wine that is neither:

(a) a *retail sale of wine; nor

(b) an *AOU connected with retail sales of wine;

is the *price (excluding wine tax and *GST) for which you could reasonably have been expected to sell the wine by wholesale under an arm's length transaction.

Subdivision 9-C - Additions to taxable value  

9-65   Taxable dealing with wine that is the contents of a container  

(1)    
This section deals with situations in which a *container is associated with wine (the contents ) that is the subject of a *taxable dealing. The aim of this section is to ensure that the *taxable value will include a component for the container, even though the parties may have allocated a separate amount to the container.

(2)    
If:

(a) the *taxable value of the dealing is calculated by reference to the *price (excluding wine tax and *GST) for which the contents were sold; and

(b) the parties have allocated a separate amount to the *container;

then the taxable value is *increased by so much of the value of the container as is recouped by the seller in connection with the sale of the contents.

(3)    
If the *taxable value of the dealing is not calculated as mentioned in subsection (2), then the taxable value is *increased by so much of the value of the *container as could reasonably be expected to have been recouped by you in connection with a hypothetical sale of the contents at the time of the actual *taxable dealing with the contents.

9-70   Assessable dealings with wine that involve the payment of an associated royalty  

(1)    
If a *royalty is paid or payable, or likely to be paid or payable, in connection with any of the following events in respect of particular wine:

(a) the *manufacture of the wine;

(b) the *importation or *local entry of the wine;

(c) a sale of the wine;

then the *taxable value of any *taxable dealing with that wine that happens at or after that event includes the amount or value of the royalty.

(2)    
Royalty is any amount to the extent to which it is paid or payable (whether or not periodically) as consideration for any of the following things (or for the right to do them):

(a) doing anything that would be an infringement of copyright if it were done without the licence of the copyright owner;

(b) making, using, exercising or vending an invention (each of those terms having the meaning it has in the Patents Act 1990);

(c) using a design that is of a kind capable of being registered under the Designs Act 2003 (whether or not it is registered under that Act or under any other law);

(d) using a trade mark that is of a kind capable of being registered under the Trade Marks Act 1995 (whether or not it is registered under that Act or under any other law), but not including a mark that relates to a service;

(e) using confidential information;

(f) using machinery, implements, apparatus or other equipment;

(g) *supplying scientific, technical, industrial, commercial or other knowledge or information;

(h) supplying assistance that is ancillary to, and is supplied as a means of enabling the application or enjoyment of, any matter covered by paragraphs (a) to (g);

(i) a total or partial forbearance in respect of any matter covered by paragraphs (a) to (h).

Terms used in paragraph (a) of this definition have the same meaning as in the Copyright Act 1968.

9-75  

9-75   Assessable dealing with wine in bond  

If a *taxable dealing happens while the wine is in bond or otherwise subject to customs control under the Customs Act 1901, the *taxable value is *increased by the amount of *customs duty to which the wine would have been subject if it had been entered for home consumption under the Customs Act 1901 at the time of the taxable dealing.

9-80  

9-80   Amounts not to be added if they are already included in the taxable value  
This Subdivision does not add any amount to the *taxable value so far as it would already be included in the taxable value.

Part 3 - Quoting  

Division 13 - Quoting for dealings in wine  

13-1  

13-1   What this Division is about  

13-5   Standard grounds for quoting ABN  

(1)    
You are entitled to *quote your *ABN for a dealing with wine if, at the time of quoting, you have the intention of dealing with the wine in any of the following ways:

(a) selling the wine by *wholesale, or by *indirect marketing sale, while the wine is in the indirect tax zone;

(b) selling the wine, by any kind of sale, while it is in the indirect tax zone (this ground is available only if you are mainly a wholesaler at the time of quoting);

(c) using the wine as a material in *manufacture or other treatment or processing, whether or not it relates to or results in other wine;

(d) making a *supply of the wine that will be *GST-free.

(2)    
However, you are not entitled to *quote unless you are *registered.

(3)    
For the purposes of paragraph (1)(b), you are mainly a wholesaler at the quoting time only if:

(a) *wholesale sales and *indirect marketing sales account for more than half of the total value of all sales of *assessable wine by you during the 12 months ending at the quoting time; or

(b) you have an expectation (based on reasonable grounds) that wholesale sales and indirect marketing sales will account for more than half of the total value of all sales of assessable wine by you during the 12 months starting at the quoting time.

For this purpose, the value of a sale of wine is the *price for which the wine is sold.

13-10  

13-10   Additional quoting grounds in special circumstances  
The Commissioner may (if you are *registered) authorise you to *quote your *ABN in special circumstances in which you would not otherwise be entitled to quote.

13-15   Periodic quoting  

(1)    
You may make a periodic *quote under this section for purchases that you propose to make from an entity (the supplier ) during the period, not exceeding 12 months, covered by the periodic quote.

(2)    
If you make such a periodic *quote on or before the first day of the period to which the quote relates, you are treated as having quoted your *ABN for all purchases during the period from the *supplier, other than purchases in respect of which you have notified the supplier in accordance with subsection (3).

(3)    
If you are not entitled to *quote for a particular purchase from the *supplier during the period, you must notify the supplier of that fact at or before the time of the purchase. The notification must be in the *approved form.

(4)    

You commit an offence if you contravene subsection (3).

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.

(5)    
Section 13-30 applies to a *quote that you are treated as having made under subsection (2) of this section for a particular purchase.

13-20   Manner in which quote must be made  

(1)    
A *quote (including a periodic quote) must be made in the *approved form.

(2)    
A *quote for a dealing is not effective unless it is made at or before the time of the dealing.

13-25  

13-25   Incorrect quote nevertheless effective for certain purposes  
If you *quote in circumstances in which you are not entitled to quote, or the quote is not in the *approved form, the quote is nevertheless:

(a) effective for the purposes of Subdivision 31-D; and

(b) effective for the purpose of section 7-10, unless section 13-30 applies.

13-30  

13-30   Quote not effective for certain purposes if there are grounds for believing it was improperly made  

A *quote is not effective, so far as it would have resulted in an exemption, if at the time of the quote the entity to which the quote is made has reasonable grounds for believing that:

(a) you are not entitled to quote in the particular circumstances; or

(b) the quote is not made in the *approved form; or

(c) the quote is false or misleading in a material particular (either because of something stated in thequote or something left out).

13-32  

13-32   Quote not effective if entity to whom quote is made purchased the wine for a price that included wine tax  

A *quote is not effective for the purposes of applying subsection 7-10(1) to a particular sale if the entity to which the quote is made purchased the wine for a *price that included wine tax.

13-35  

13-35   Improper quoting is an offence  
You must not, in relation to any dealing with wine:

(a) quote an *ABN for the purposes of this Act:

(i) in circumstances in which you are not entitled to quote; or

(ii) in contravention of subsection 13-20(1); or

(b) in any other way falsely quote an ABN.

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.

Note 3:

Section 23 of the A New Tax System (Australian Business Number) Act 1999 provides penalties for misuse of ABNs.

Part 4 - Wine tax credits  

Division 17 - Wine tax credits  

17-1  

17-1   What this Division is about  

Note:

If you are in the GST system, wine tax credits are included in your net amounts (see Part 5). If you are not in the GST system, you can claim wine tax credits under this Part. Producer rebates under Division 19 are a form of wine tax credit.

17-5   Wine tax credit entitlements  

(1)    
The *Wine Tax Credit Table sets out the situations in which you are entitled to a *wine tax credit.

(2)    
You are not entitled to a *wine tax credit for an amount of tax for which a wine tax credit entitlement has previously arisen (whether for you or another entity).

(3)    

You are not entitled to a *wine tax credit unless you make a claim for the wine tax credit under section 17-10.

Wine Tax Credit Table
No.	Summary of ground	Details of ground	Amount of *wine tax credit	Time *wine tax credit arises
CR1	Tax overpaid	You have paid an amount as wine tax that was not legally payable.	the amount overpaid, to the extent that you have not *passed it on	when the amount became overpaid
CR2	(Repealed by No 94 of 2017)
CR3	(Repealed by No 94 of 2017)
CR4	Avoiding double tax on the same wine	You have become liable to wine tax on an *assessable dealing (the current dealing ) in relation to wine, but have *borne wine tax on all of the wine before the time of the current dealing.	the wine tax previously *borne on the wine	time of the current dealing
CR5	(Repealed by No 94 of 2017)
CR6	(Repealed by No 94 of 2017)
CR7	Ensuring no double tax in respect of *containers	You are liable to the wine tax on an *assessable dealing with wine that is the contents of a *container. You have *borne wine tax on the container.	the *wine tax borne on the *container	time of the *assessable dealing
CR8	Replacement of defective wine	You have *borne wine tax on *assessable wine used for the purpose of replacing other wine because of defects in the other wine.	*wine tax borne on replacement wine	time of replacement
CR9	*Producer rebate	An *assessable dealing is made in circumstances that entitle you to a producer rebate under Division 19.	the amount of the producer rebate under Division 19	immediately before the end of the financial year in which the assessable dealing occurs
CR10	(Repealed by No 94 of 2017)
CR11	(Repealed by No 94 of 2017)
CR12	(Repealed by No 176 of 1999)
CR13	(Repealed by No 94 of 2017)
CR14	Drawback of *customs duty on *imported wine	You have become liable to wine tax on a *local entry of wine for which drawback of *customs duty has been allowed under section 168 of the Customs Act 1901 (or, in the Commissioner's opinion, would have been allowed if wine had been liable to duty).	wine tax payable on the *local entry	time when drawback was allowed (or would have been allowed)
CR15	Sale *price written off as bad debt	You have: (a) paid wine tax on an *assessable dealing that is a sale and later written off some or all of the *price for which the wine was sold; or (b) paid wine tax on an assessable dealing that is a *local entry (other than an *LE4) and later written off some or all of the price for which the wine was first sold by you after the local entry.	a proportion of the wine tax paid that is equal to the proportion of the debt written off	time of writing off

17-10   Claims for wine tax credits  

(1)    

If you are *registered or *required to be registered, you may make a claim for a *wine tax credit (other than a claim for a *producer rebate under subsection 19-5(2)) by including the amount of the wine tax credit in the *reduction of your *net amount for the *tax period in question under section 21-15.

(2)    

If you are not *registered or *required to be registered, you may make a claim for a *wine tax credit (other than a claim for a *producer rebate under subsection 19-5(2)) in the *approved form. The claim must be accompanied by such supporting evidence as the Commissioner requires.

(2A)    

If you are a *New Zealand participant, you may make a claim for a *wine tax credit under subsection 19-5(2) in the *approved form. The claim must be accompanied by such supporting evidence as the Commissioner requires.

(2B)    

The Commissioner may determine, by legislative instrument, the time or times during which claims for *wine tax credits under subsection 19-5(2) may be made.

(3)    

A claim under subsection (2) or (2A) must be lodged with the Commissioner within 4 years after the time when the *wine tax credit arises.

17-15  

17-15   Commissioner not required to consider credit claims for less than $200  

The Commissioner is not required to consider a claim under subsection 17-10(2) or (2A) for a *wine tax credit if the total amount claimed is less than $200.

17-20  

17-20   Wine tax credits to be applied against tax liabilities and excess refunded  

If you have claimed under subsection 17-10(2) or (2A) a *wine tax credit to which you are entitled, the Commissioner must apply the wine tax credit under Division 3 of Part IIB of the Taxation Administration Act 1953.

17-25  

17-25   Excess wine tax credits must be repaid  
If the amount applied by the Commissioner in accordance with section 17-20 is more than the amount of the *wine tax credit to which you are properly entitled, the excess is to be treated as if it were wine tax that became payable, and due for payment, by you at the time when it was applied.

Note:

The main effect of treating the amount as if it were tax is to apply the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953.

17-30   Clawback of CR15 wine tax credit on later recovery of bad debt  

(1)    
A *wine tax credit under *CR15 in relation to an amount written off by you as a bad debt is subject to the condition that you are liable to pay an amount under this section if you later recover some or all of the amount written off.

(2)    
The amount payable by you is calculated using the following formula:

*CR15 wine tax credit

×

Amount recovered Amount written off

(3)    
The amount is to be treated as if it were wine tax that became payable by you at the time of recovery of the bad debt, and, for the purposes of Part 5, were attributable to the *tax period in which the recovery happened.

Note:

The main effect of treating the amount as if it were wine tax is to apply the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953.

17-35   Clawback of CR8 wine tax credit on later sale of defective wine  

(1)    
A *wine tax credit under *CR8 for wine tax on wine that was used to replace defective wine is subject to the condition that you are liable to pay an amount under this section if you later sell the defective wine.

(2)    
The amount payable by you is calculated using the following formula:

*CR8 wine tax credit	×	Consideration for later sale of defective wine
		Taxable value of earlier dealing with the defective wine	+	Tax payable on the earlier dealing with the defective wine

(3)    
The amount is to be treated as if it were wine tax that became payable by you at the time of the later sale of the defective wine, and, for the purposes of Part 5, were attributable to the *tax period in which the later sale happened.

Note:

The main effect of treating the amount as if it were wine tax is to apply the collection and recovery rules in Part 3-10 in Schedule 1 to the Taxation Administration Act 1953.

17-37  

17-37   Clawback of CR10 wine tax credit on later sale  
(Repealed by No 94 of 2017)

17-40   Agreement with Commissioner regarding wine tax credits  

(1)    
The Commissioner may enter into an agreement with you regarding the manner of calculating and claiming *wine tax credits to which you are entitled.

(2)    
So far as the agreement is inconsistent with this Act, the agreement prevails.

17-45  

17-45   Notifying disallowance of wine tax credit claim  
If the Commissioner decides to disallow the whole or a part of a claim for a *wine tax credit, the Commissioner must notify you of the decision.

Note:

Disallowing the whole or a part of a claim for a wine tax credit is a reviewable wine tax decision (see Subdivision 111-C in Schedule 1 to the Taxation Administration Act 1953).

Division 19 - Producer rebates  

19-1  

19-1   What this Division is about  

Note:

Credit ground CR9 is producer rebates.

19-5   Entitlement to producer rebates  

(1)    
You are entitled to a *producer rebate for *rebatable wine for a *financial year if:

(a) you are the *producer of the wine; and

(b) either:

(i) you are liable to wine tax for an *assessable dealing in the wine during the financial year; or

(ii) you would have been liable to wine tax for an assessable dealing in the wine during the financial year had the purchaser not *quoted for the sale at or before the time of the sale; and

(c) if subparagraph (b)(ii) applies - the purchaser's *quote did not state an intention of dealing with the wine in a way described in subparagraph 5-50(1)(b)(i) or (ii); and

(d) you satisfy the requirements in subsection (3) (ownership of source product) for at least 85% of the wine (measured by volume); and

(e) the wine is in a *container that meets the requirements in subsection (7) at the time of the assessable dealing.

(2)    

You are entitled to a *producer rebate for *rebatable wine for a *financial year if:

(a) you are approved as a *New Zealand participant; and

(b) you are the *producer of the wine; and

(c) the wine was produced in *New Zealand and exported to the indirect tax zone; and

(d) you, or another entity, paid wine tax for an *assessable dealing in the wine during the financial year; and

(e) you satisfy the requirements in subsection (3) (ownership of source product) for at least 85% of the wine (measured by volume); and

(f) the wine is in a *container that meets the requirements in subsection (7) at the time of the assessable dealing.

(3)    
You satisfy the requirements in this subsection for wine if you own the *source product for the wine throughout the period:

(a) starting:

(i) if that source product is covered by paragraph (4)(a), (b), (c) or (d) - immediately before the crushing of that source product; or

(ii) if that source product is covered by paragraph (4)(e) or (f) - immediately before the initial fermentation of that source product; and

(b) ending when the wine is placed in a *container that meets the requirements in subsection (7).

(4)    
The source product for wine is:

(a) for *grape wine - the fresh grapes from which the grape wine is produced; or

(b) for *grape wine products - the fresh grapes from which the grape wine products are produced; or

(c) for *fruit or vegetable wine - the fruit or vegetables from which the fruit or vegetable wine is produced; or

(d) for *cider or perry - the apples or pears from which the cider or perry is produced; or

(e) for *mead - the honey from which the mead is produced; or

(f) for *sake - the rice from which the sake is produced.

(5)    
You are taken to have satisfied the requirements in subsection (3) for wine, to the extent that the wine is composed of any of the following substances that you have caused to be added to the wine:

(a) grape spirit;

(b) brandy;

(c) alcohol used in preparing vegetable extracts (including spices, herbs and grasses);

(d) ethyl alcohol from a source as specified in the regulations for the purposes of paragraph 31-4(b), 31-5(b), 31-6(b) or 31-7(b);

(e) water;

(f) if no more than 10% of the wine (measured by volume) is grape juice concentrate that you have caused to be added to the wine - that grape juice concentrate;

(g) if no more than 1% of the wine (measured by volume) is another substance that you have caused to be added to the wine - that other substance.

(6)    
For the purposes of paragraph (5)(g), treat substances that are similar to each other as being the same substance.

(7)    
A *container in which wine is placed meets the requirements in this subsection if:

(a) any of the following requirements are satisfied:

(i) the container is suitable for *retail sale and the volume of the container does not exceed 5 litres;

(ii) if the wine is *cider or perry - the container is suitable for retail sale of portions of the contents of the container and the volume of the container does not exceed 51 litres; and

(b) the container in which the wine is placed at the time of the *assessable dealing is branded by a trade mark applied to the container; and

(c) the trade mark identifies, or can readily be associated with, the *producer of the wine; and

(d) the trade mark is owned by:

(i) the producer of the wine; or

(ii) an entity that is an *associated producer of the producer of the wine for the *financial year in which the assessable dealing occurs because it satisfies the requirement in paragraph 19-20(1)(a) (on the assumption that it were a producer); and

(e) the trade mark is:

(i) a trade mark (within the meaning of the Trade Marks Act 1995); or

(ii) if paragraphs (2)(a), (b) and (c) apply - a trade mark (within the meaning of the Trade Marks Act 2002 of New Zealand); and

(f) the trade mark satisfies any of the following requirements:

(i) the trade mark is a registered trade mark (within the meaning of the Trade Marks Act 1995);

(ii) if paragraphs (2)(a), (b) and (c) apply - the trade mark is a registered trade mark (within the meaning of the Trade Marks Act 2002 of New Zealand);

(iii) an application for registration of the trade mark under the Trade Marks Act 1995 satisfies the requirements under that Act for the application to be pending (within the meaning of that Act);

(iv) if paragraphs (2)(a), (b) and (c) apply - an application for registration of the trade mark under the Trade Marks Act 2002 of New Zealand satisfies requirements under that Act that are equivalent to the requirements mentioned in subparagraph (iii);

(v) the trade mark has been used by the producer of the wine throughout the period beginning on 1 July 2015 and ending at the time of the assessable dealing.

19-7   Approval as New Zealand participant  

(1)    
You may apply, in writing, in the *approved form, to the Commissioner for approval as a *New Zealand participant.

(2)    
You are eligible to be approved as a *New Zealand participant if the Commissioner is satisfied, on the basis of your application and any other relevant information of which the Commissioner becomes aware, that:

(a) you are a *producer of *rebatable wine in *New Zealand; and

(b) the rebatable wine has been, or is likely to be, exported to the indirect tax zone.

(3)    
If the Commissioner, after consideration of your application, is satisfied of the matters referred to in subsection (2) in relation to you, the Commissioner must, by written instrument, approve you as a *New Zealand participant.

(4)    
The Commissioner must decide the date of effect of that approval and include that date in the instrument of approval. That date may be the day of the decision, or a day before or after that day.

Note:

Deciding under this subsection the date of effect of any approval of an entity as a New Zealand participant is a reviewable wine tax decision (see Subdivision 111-C in Schedule 1 to the Taxation Administration Act 1953).

(5)    
If the Commissioner approves you as a *New Zealand participant, the Commissioner must, by notice in writing sent to you, inform you that you have been so approved and of the date from which the approval has effect.

(6)    
If the Commissioner, after consideration of your application, is not satisfied of the matters referred to in subsection (2) in relation to you, the Commissioner must:

(a) by written instrument, refuse to approve you as a *New Zealand participant; and

(b) by notice in writing sent to you, inform you that the Commissioner has so decided and of the reasons for that decision.

Note:

Refusing to approve an entity as a New Zealand participant is a reviewable wine tax decision (see Subdivision 111-C in Schedule 1 to the Taxation Administration Act 1953).

(7)    
An instrument of approval under subsection (3) and an instrument refusing approval under subsection (6) are not legislative instruments.

19-8   Revoking an approval as a New Zealand participant  

(1)    
If, at any time, the Commissioner becomes aware that you cease to satisfy the criteria for approval as a *New Zealand participant, the Commissioner must, by written instrument, revoke your approval.

Note:

Revoking under this subsection the approval of an entity as a New Zealand participant is a reviewable wine tax decision (see Subdivision 111-C in Schedule1 to the Taxation Administration Act 1953).

(2)    
The Commissioner must decide the date of effect of that revocation and include that date in the instrument of revocation. That date may be the day of the decision, or a day before or after that day.

Note:

Deciding under this subsection the date of effect of any revocation of an approval as a New Zealand participant is a reviewable wine tax decision (see Subdivision 111-C in Schedule 1 to the Taxation Administration Act 1953).

(3)    
If the Commissioner revokes your approval as a *New Zealand participant, the Commissioner must, by notice in writing sent to you, inform you that the Commissioner has revoked your approval, indicate the date from which the revocation has effect and of the reasons for revoking that approval.

(4)    
An instrument of revocation under subsection (1) is not a legislative instrument.

19-9   Notification of changed circumstances  

(1)    
An entity approved as a *New Zealand participant must notify the Commissioner in writing of any circumstances under which the Commissioner must revoke the approval. The notification must be given to the Commissioner within 21 days after the circumstances occurred.

(2)    
A notification under subsection (1) is not a legislative instrument.

19-10  

19-10   Exceptions  
(Repealed by No 94 of 2017)

19-15   Amount of producer rebates  

(1)    

The amount of the *producer rebates to which you are entitled because of subsection 19-5(1) 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.

(1A)    

The amount of the *producer rebates to which you are entitled because of subsection 19-5(2) for the wine for the *financial year is an amount equal to 29% of the approved selling price for the wine.

(1B)    

In working out the amount of the *producer rebate to which you are entitled because of subsection 19-5(2), any component used to determine the approved selling price that is expressed in a currency other than Australian currency is to be treated as if it were an amount of Australian currency worked out in the manner determined, by legislative instrument, by the Commissioner.

(1C)    

In this section:

approved selling price
, in relation to wine sold by a *New Zealand participant, means the participant's selling price for the wine net of any expenses unrelated to the production of the wine in *New Zealand, including but not limitedto:

(a) expenses relating to transportation, freight and insurance, agent's fees and any other costs associated with exportation of the wine from New Zealand and importation of the wine into the indirect tax zone; and

(b) New Zealand and Australian taxes including customs duties.

(2)    

The maximum amount of *producer rebates to which a *producer is entitled for a *financial year under this Division is $350,000.

(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 under this Division is $350,000.

19-17  

19-17   Earlier producer rebates  
(Repealed by No 94 of 2017)

19-20   Associated producers  

(1)    

A *producer is an associated producer of another producer for a *financial year if, at any time during that financial year:

(a) the producer would be *connected with the other producer if subsection 328-125(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 because of subsection 19-5(1) 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.

(1A)    

If the sum of the amounts of *producer rebates that you claim because of subsection 19-5(2) for the *financial year exceeds the amount of the producer rebates to which you are entitled in respect of that 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 under this Division is more than $350,000.

(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, except in the case of a *New Zealand participant, 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 3-10 in Schedule 1 to the Taxation Administration Act 1953.

(5)    

For the purposes of the application of Parts 3-10 and 4-1 in Schedule 1 to the Taxation Administration Act 1953, a *producer rebate under subsection 19-5(2) is to be treated as a net amount.

19-28  

19-28   Obligations relating to certain wholesale sales  
(Repealed by No 94 of 2017)

19-30  

19-30   Obligation of purchasers  
(Repealed by No 94 of 2017)

Part 5 - Payments and refunds of wine tax  

Division 21 - Inclusion of wine tax and wine tax credits in net amounts  

21-1   What this Division is about  

Note:

Division 165 (Anti-avoidance) of the GST Act will cover avoidance schemes relating to wine tax so far as they affect net amounts, because such schemes affect amounts payable under the GST Act.

Subdivision 21-A - General  

21-5   Net amounts increased by amounts of wine tax  

(1)    

Your *net amount for a *tax period is *increased by the sum of all of the amounts of wine tax (if any) payable by you that are attributable to that tax period.

(2)    
However, this section does not apply to wine tax payable on *customs dealings.

Note:

This section has the effect of incorporating your liability for the wine tax (other than wine tax on customs dealings) into the amount of GST that you are liable to pay under Division 33 of the GST Act, or into the amount of refund to which you are entitled under Division 35 of the GST Act.

21-10   Attribution rules for wine tax  

(1)    
The wine tax payable by you on a *taxable dealing that is a *supply is attributable to the same *tax period, or tax periods, applying to you as the tax period or tax periods to which:

(a) if the supply is a *taxable supply - the taxable supply is attributable; or

(b) if the supply is not a taxable supply - the supply would be attributable if it were a taxable supply.

For the basic rules on attribution of taxable supplies, see section 29-5 of the GST Act.

(2)    
The wine tax payable by you on a *taxable dealing that is not a *supply is attributable to the *tax period during which the time of dealing occurs, as specified in column 4 of the *Assessable Dealings Table.

21-15  

21-15   Net amounts reduced by amounts of wine tax credits  

Your *net amount for a *tax period is *reduced by the sum of all of the amounts of *wine tax credits (if any) to which you are entitled that arise during that tax period.

Note 1:

This section has the effect of incorporating your entitlement to wine tax credits into the amount of GST that you are liable to pay under Division 33 of the GST Act, or into the amount of refund to which you are entitled under Division 35 of the GST Act.

Note 2:

If you are not registered or required to be registered (and therefore do not have net amounts), you can claim wine tax credits to which you are entitled directly from the Commissioner (see subsection 17-10(2)).

Subdivision 21-B - Members of GST groups  

21-40   Who is liable for wine tax  

(1)    
Wine tax payable on a *taxable dealing for which a *member of a *GST group would (apart from this section) be liable to the tax:

(a) is payable by the *representative member; and

(b) is not payable by the member that would be so liable (unless the member is the representative member).

(2)    
However, if the member is not the *representative member of the *GST group, this section only applies to wine tax payable on a *customs dealing if the tax is payable at a time when wine tax on *taxable dealings is normally payable by the representative member.

(3)    
This section has effect despite subsection 5-5(2) (which is about liability for wine tax).

21-45   Who is entitled to wine tax credits  

(1)    
If a *member of a *GST group would (apart from this section) be entitled to a *wine tax credit:

(a) the *representative member is entitled to the wine tax credit; and

(b) the member that would be so entitled is not entitled to the wine tax credit (unless the member is the representative member).

(2)    
This section has effect despite section 17-5 (which is about entitlement to wine tax credits).

Subdivision 21-C - Participants in GST joint ventures  

21-70   Who is liable for wine tax  

(1)    
Wine tax payable on a *taxable dealing that the *joint venture operator of a *GST joint venture makes, on behalf of another *participant in the joint venture, in the course of activities for which the joint venture was entered into:

(a) is payable by the joint venture operator; and

(b) is not payable by the other participant.

(2)    
This section has effect despite subsection 5-5(2) (which is about liability for wine tax).

21-75   Who is entitled to wine tax credits  

(1)    
If a *participant in a *GST joint venture would (apart from this section) be entitled to a *wine tax credit relating to a *taxable dealing that the *joint venture operator of the joint venture makes on the participant's behalf:

(a) the joint venture operator is entitled to the wine tax credit; and

(b) the participant that would be so entitled is not entitled to the wine tax credit (unless the participant is the joint venture operator).

(2)    
This section has effect despite section 17-5 (which is about entitlement to wine tax credits).

21-80   Additional net amounts relating to GST joint ventures  

The additional net amount relating to a *GST joint venture in section 51-45 of the *GST Act:

(a) is increased by the amount of any wine tax on *taxable dealings for which the *joint venture operator is liable because of section 21-70; and

(b) is decreased by the amount of any *wine tax credits to which the joint venture operator is entitled because of section 21-75.

Division 23 - Wine tax on customs dealings  

23-1   What this Division is about  

23-5   Payment of wine tax on customs dealings  

(1)    

Amounts of *assessed wine tax on *customs dealings are to be paid to the Commonwealth:

(a) at the same time, at the same place, and in the same manner, as *customs duty is payable on the wine in question (or would be payable if the wine were subject to customs duty); or

(b) in the circumstances specified in the regulations, within such further time specified in the regulations, and at the place and in the manner specified in the regulations.

Note 1:

The regulations could (for example) allow for deferral of payments to coincide with payments of assessed net amounts.

Note 1A:

For provisions about assessment of wine tax on customs dealings, see Division 155 in Schedule 1 to the Taxation Administration Act 1953.

Note 2:

For provisions about collection and recovery of assessed wine tax on customs dealings, see Subdivision 105-C, and Part 4-15, in Schedule 1 to the Taxation Administration Act 1953.

(2)    

An officer of Customs (within the meaning of subsection 4(1) of the Customs Act 1901) may refuse to deliver the goods concerned unless the *assessed wine tax has been paid.

23-10  

23-10   Application of Division 165 of the GST Act  
Division 165 of the *GST Act applies to amounts that are payable under this Division as if they were amounts payable under the GST Act.

Division 25 - Tourist refund scheme  

25-1   What this Division is about  

25-5   Tourist refund scheme  

Exporting wine as accompanied baggage

(1)    
If:

(a) you have *borne wine tax on wine that you purchased; and

(b) the purchase is of a kind specified in the regulations; and

(c) you leave the indirect tax zone, and export the wine from the indirect tax zone as accompanied baggage, in the circumstances specified in the regulations;

the Commissioner must, on behalf of the Commonwealth, pay to you an amount equal to:

(d) the amount of the wine tax that you have borne on the wine; or

(e) such proportion of that amount of wine tax as is specified in the regulations.

Resident of external Territory sending wine home

(1A)    

If:

(a) you have *borne wine tax on wine that you purchased; and

(b) the purchase is of a kind specified in the regulations; and

(c) an amount is payable to you under subsection 168-5(1A) of the *GST Act for the *taxable supply corresponding to the purchase;

the Commissioner must, on behalf of the Commonwealth, pay to you an amount equal to:

(d) the amount of the wine tax that you have borne on the wine; or

(e) such proportion of that amount of wine tax as is specified in the regulations.

Working out amounts of wine tax borne

(2)    
The regulations may specify how amountsof *wine tax borne are to be worked out.

Paying the refund

(3)    

An amount payable under this section is payable within the period and in the manner specified in the regulations.

25-10   Purchases later found to be GST-free supplies  

(1)    
If:

(a) you are paid an amount under subsection 25-5(1A) for a purchase; and

(b) the supply corresponding to the purchase is or becomes a *GST-free supply;

you become liable to repay the amount (the recoverable amount ) to the Commonwealth on the later of the following days (the due day ):

(c) the day you were paid the recoverable amount;

(d) the day the supply becomes a GST-free supply.

(2)    
You are liable to pay general interest charge on the whole, or any part, of the recoverable amount that remains unpaid after the due day for each day in the period that:

(a) starts on the due day; and

(b) finishes at the end of the last day at the end of which any of the following remains unpaid:

(i) the recoverable amount;

(ii) general interest charge on any of the recoverable amount.

Part 6 - Miscellaneous  

Division 27 - Miscellaneous  

27-1  

27-1   Application of this Act to cider, perry, mead and sake  
(Repealed by No 176 of 1999)

27-5   Wine tax must be specified on invoice for wholesale sales  

(1)    
If you sell wine by *wholesale at a *price that includes wine tax that you have or will become liable to pay on the wine, you must specify the amount of the tax on any invoice given to the purchaser.

(2)    

You commit an offence if you contravene this section.

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.

27-10   Alteration of wine tax liability or wine tax credit if affected by non-arm's length transaction  

(1)    
This section applies to you if:

(a) you (or your *associate) has been a party to a non-arm's length transaction; and

(b) if the transaction had instead been an arm's length transaction, it would have been the case (or could reasonably be expected to have been the case) that:

(i) your liability to wine tax on the non-arm's length transaction, or any other transaction, would have been *increased; or

(ii) your entitlement to a *wine tax credit in connection with the non-arm's length transaction, or any other transaction, would have been *reduced.

(2)    
The liability or *wine tax credit is taken always to have been the amount that it would have been (or could reasonably be expected to have been) if it had been based on an arm's length transaction instead of on the non-arm's length transaction.

27-15   Apportionment of global amounts  

(1)    
If there is a need to know the *price for which particular wine was sold, but the parties have not allocated a particular amount to the wine, the price for which the wine was sold is (for the purposes of the *wine tax law) the price for which the wine could reasonably be expected to have been sold if it had been sold separately.

(2)    
Similarly, if there is a need to know how much of a global amount relates to some other element of a transaction, but the parties have not allocated a particular amount to that element, the amount to be allocated to that element (for the purposes of the *wine tax law) is the amount that could reasonably be expected to have been allocated to that element if that element had been the only subject matter of the transaction.

27-20   Commonwealth etc. not liable to pay wine tax  

(1)    

The Commonwealth and *untaxable Commonwealth entities are not liable to pay wine tax payable under this Act. However, it is the Parliament's intention that the Commonwealth and untaxable Commonwealth entities should:

(a) be notionally liable to pay wine tax payable under this Act; and

(b) be notionally entitled to *wine tax credits arising under this Act.

(2)    

The *Finance Minister may give such written directions as are necessary or convenient for carrying out or giving effect to subsection (1) and, in particular, may give directions in relation to the transfer of *money within an account, or between accounts, operated by the Commonwealth or an *untaxable Commonwealth entity.

(2A)    

The directions given under subsection (2) may also take account of the provisions of the A New Tax System (Wine Equalisation Tax and Luxury Car Tax Transition) Act 1999.

(3)    
Directions under subsection (2) have effect, and must be complied with, despite any other Commonwealth law.

(4)    

(Repealed by No 58 of 2006)

27-25   Cancellation of exemptions from wine tax  

(1)    
This section cancels the effect of a provision of another Act that would have the effect of exempting a person from liability to pay wine tax payable under this Act.

(2)    
The cancellation does not apply if the provision of the other Act:

(a) commences after this section commences; and

(b) refers specifically to wine tax payable under this Act.

27-30  

27-30   Application of the Criminal Code  
The Criminal Code applies to all offences against this Act.

27-35   Regulations  

(1)    
The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

(2)    
In particular, the regulations may make provision:

(a) (Repealed by No 176 of 1999)

(b) relating to the service of documents under, or for the purposes of, the *wine tax law (including the service of process in proceedings for the recovery of tax or other amounts payable under the wine tax law);

(c) for penalties for offences against the regulations by way of fines of up to $1,000.

Part 7 - Interpreting this Act  

Division 29 - Rules for interpreting this Act  

29-1   What forms part of this Act  

(1)    
These all form part of this Act:

• the headings to the Parts, Divisions and Subdivisions of this Act;

• *explanatory sections;

• the headings to the sections and subsections of this Act;

• the notes and examples (however described) that follow provisions of this Act.

(2)    
The asterisks used to identify defined terms form part of this Act. However, if a term is not identified by an asterisk, disregard that fact in deciding whether or not to apply to that term a definition or other interpretation provision.

29-5  

29-5   What does not form part of this Act  
These do not form part of this Act:

• footnotes and endnotes;

• Tables of Subdivisions.

29-10   Explanatory sections, and their role in interpreting this Act  

(1)    
An explanatory section is:

(a) any section that is the first section in a Division and that has as its heading ``What this Division is about''; or

(b) any section in Division 2, 3 or 4.

(2)    
*Explanatory sections form part of this Act, but they are not operative provisions. In interpreting an operative provision, an explanatory section may only be considered:

(a) in determining the purpose or object underlying the provision; or

(b) to confirm that the provision's meaning is the ordinary meaning conveyed by its text, taking into account its context in this Act and the purpose or object underlying the provision; or

(c) in determining the provision's meaning if the provision is ambiguous or obscure; or

(d) in determining the provision's meaning if the ordinary meaning conveyed by its text, taking into account its context in this Act and the purpose or object underlying the provision, leads to a result that is manifestly absurd or is unreasonable.

Division 31 - Meaning of some important concepts  

Subdivision 31-A - Wine  

31-1   Meaning of wine  

(1)    
Wine means any of these:

(a) *grape wine;

(b) *grape wine products;

(c) *fruit or vegetable wine;

(d) *cider or perry;

(e) *mead;

(f) *sake.

(2)    
However, wine does not include beverages that do not contain more than 1.15% by volume of ethyl alcohol.

31-2   Meaning of grape wine  

(1)    
Grape wine is a beverage that:

(a) is the product of the complete or partial fermentation of fresh grapes or products derived solely from fresh grapes; and

(b) complies with any requirements of the regulations, made for the purposes of section 31-8, relating to grape wine.

(2)    
A beverage does not cease to be the product of the complete or partial fermentation of fresh grapes or products derived solely from fresh grapes merely because grape spirit, brandy, or both grape spirit and brandy, have been added to it.

Note:

The concept of grape wine is used in Subdivision 9-B to work out the taxable value of retail transactions involving wine produced from grapes. In the case of grape wine, you can choose to use the average wholesale price method of working out taxable values.

31-3   Meaning of grape wine product  

Grape wine product is a beverage that:

(a) contains at least 700 millilitres of *grape wine per litre; and

(b) has not had added to it, at any time, any ethyl alcohol from any other source, except:

(i) grape spirit; or

(ii) alcohol used in preparing vegetable extracts (including spices, herbs and grasses); and

(c) contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol; and

(d) complies with any requirements of the regulations, made for the purposes of section 31-8, relating to grape wine products.

31-4   Meaning of fruit or vegetable wine  

Fruit or vegetable wine is a beverage that:

(a) is the product of the complete or partial fermentation of the juice or must of:

(i) fruit or vegetables; or

(ii) products derived solely from fruit or vegetables; and

(b) has not had added to it, at any time, any ethyl alcohol from any other source, except as specified in the regulations; and

(c) has not had added to it, at any time, any liquor or substance that gives colour or flavour, except as specified in the regulations; and

(d) contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol; and

(e) complies with any requirements of the regulations, made for the purposes of section 31-8, relating to fruit or vegetable wine.

31-5   Meaning of cider or perry  

Cider or perry is a beverage that:

(a) is the product of the complete or partial fermentation of the juice or must of apples or pears; and

(b) has not had added to it, at any time, any ethyl alcohol from any other source, except as specified in the regulations; and

(c) has not had added to it, at any time, any liquor or substance (other than water or the juice or must of apples or pears) that gives colour or flavour, except as specified in the regulations; and

(d) complies with any requirements of the regulations, made for the purposes of section 31-8, relating to cider or perry.

31-6   Meaning of mead  

Mead is a beverage that:

(a) is the product of the complete or partial fermentation of honey; and

(b) has not had added to it, at any time, any ethyl alcohol from any other source, except as specified in the regulations; and

(c) has not had added to it, at any time, any liquor or substance (other than honey) that gives colour or flavour, except as specified in the regulations; and

(d) complies with any requirements of the regulations, made for the purposes of section 31-8, relating to mead.

31-7   Meaning of sake  

Sake is a beverage that:

(a) is the product of the complete or partial fermentation of rice; and

(b) has not had added to it, at any time, any ethyl alcohol from any other source, except as specified in the regulations; and

(c) has not had added to it, at any time, any liquor or substance that gives colour or flavour, except as specified in the regulations; and

(d) complies with any requirements of the regulations, made for the purposes of section 31-8, relating to sake.

31-8   Requirements for types of wine  

(1)    
The regulations may specify requirements for these types of wine:

(a) *grape wine;

(b) *grape wine products;

(c) *fruit or vegetable wine;

(d) *cider or perry;

(e) *mead;

(f) *sake.

(2)    
The requirements for a particular type of wine may relate to any of the following:

(a) the substances that may be added to that type of wine;

(b) the quantities in which those substances may be added to that type of wine;

(c) the substances that must not be added to that type of wine;

(d) the substances that may be used in the production of that type of wine;

(e) the quantities in which those substances may be used in the production of that type of wine;

(f) the substances that must not be used in the production of that type of wine;

(g) the composition of that type of wine.

31-9   Measuring alcoholic content  

For the purposes of this Subdivision, the volume of ethyl alcohol in beverages is to be measured at 20°C and is to be calculated on the basis that the specific gravity of ethyl alcohol is 0.79067 (at 20°C in a vacuum).

Former Subdivision 31-B - Grape wine  

Subdivision 31-C - Borne wine tax and wine tax borne  

31-10   Meanings of borne wine tax and wine tax borne  

(1)    
This section sets out the 2 situations in which an entity is taken to have borne wine tax on wine.

(2)    
An entity is taken to have borne wine tax on wine if the entity has become liable to wine tax on an *assessable dealing with the wine. However, the wine tax for which the entity has become liable is not counted to the extent to which it has been the basis of a *wine tax credit entitlement.

(3)    
An entity is taken to have borne wine tax on wine if the entity purchased the wine for a *price that included wine tax. However, the amount of wine tax borne is to be *reduced by any amount of the wine tax included in that price that has been refunded or *wine tax credited to the entity.

Subdivision 31-D - Obtaining wine under quote etc.  

31-15   Meaning of obtain wine under quote etc.  

(1)    
This section sets out the circumstances in which wine is taken to be obtained by an entity under quote.

(2)    
An entity purchases wine under quote if the entity *quotes on the purchase of the wine, and either:

(a) the sale is an *assessable dealing by the seller that is exempted from tax only because of the quote; or

(b) on the basis of the quote, the seller agrees to exclude tax from the *price of the wine.

(3)    
An entity locally enters wine under quote if the entity *quotes on the *local entry of the wine and the local entry is exempted from tax only because of the quote.

(4)    
An entity obtains wine under quote if:

(a) the entity *purchases, or *locally enters, the wine under quote as described in subsection (2) and (3); or

(b) the entity *quotes on a *customs dealing with the wine and the dealing is exempted from tax only because of the quote.

(c) (Repealed by No 94 of 2017)

Former Subdivision 31-E - Approved forms  

Division 33 - Dictionary  

33-1  

33-1   Dictionary  

In this Act, unless the contrary intention appears:

ABN
has the meaning given by section 41 of the A New Tax System (Australian Business Number) Act 1998.

accompanied baggage
(Repealed by No 176 of 1999)

AD1a
means the *assessable dealing of that name in the *Assessable Dealings Table, and AD1b, AD2a etc. have corresponding meanings.

airport shop goods
has the same meaning as in the Customs Act 1901.

amount
includes a nil amount.

annual rebatable turnover
(Repealed by No 129 of 2004)

AOU
means *application to own use.

AOU connected with retail sales of wine
means an *AOU that:

(a) is constituted by consuming wine or giving wine away; and

(b) is connected with making, or attempting to make, *retail sales of wine.

AOU connected with retail sales of grape wine
(Repealed by No 176 of 1999)

application to own use
, in relation to wine, includes any of the following:

(a) consuming the wine;

(b) giving the wine away, or transferring property in the wine under a contract that is not a contract of sale;

(c) granting any right or permission to use the wine;

(d) if an entity other than the owner has *locally entered the wine - anything done by the entity that would be an application to own use of the wine by the owner if it had been done by the owner;

but does not include:

(e) selling the wine or consigning it for sale by consignment; or

(f) if the wine is *imported wine - anything done with it after *importation and before it is locally entered; or

(g) using the wine as part of the process of manufacture or other treatment or processing of wine or other goods.

approved form
has the meaning given by section 995-1 of the *ITAA 1997.

assessable dealing
means any dealing covered by the *Assessable Dealings Table.

Assessable Dealings Table
means the table in section 5-5.

assessable wine
means *Australian wine or *imported wine.

assessed wine tax
, on a *customs dealing, means the wine tax *assessed on the customs dealing.

assessment
has the meaning given by the *ITAA 1997.

associate
has the meaning given by section 318 of the Income Tax Assessment Act 1936.

associated producer
has the meaning given by section 19-20.

Australia
(Repealed by No 2 of 2015)

Australian wine
means wine that has been *manufactured in the indirect tax zone, but does not include *imported wine.

average wholesale price method
for working out the *notional wholesale selling price of a *taxable dealing is the method set out in section 9-40.

beer
(Repealed by No 176 of 1999)

borne wine tax
has the meaning given by Subdivision 31-C.

cider or perry
has the meaning given by section 31-5.

Commissioner
means the Commissioner of Taxation.

Commonwealth entity
(Repealed by No 58 of 2006)

company
means:

(a) a body corporate; or

(b) any other unincorporated association or body of persons;

but does not include a *partnership.

connected with
has the meaning given by section 328-125 of the *ITAA 1997.

container
means:

(a) packaging in which, or with which, any property (the contents ) is packed or secured, in the ordinary course of a business, for the purpose of the marketing or delivery of the contents; and

(b) ancillary items that are packed or secured with the contents and are intended, and reasonably necessary, to allow or facilitate the use of the contents.

CR1
means the wine tax credit ground of that name in the *Wine Tax Credit Table, and CR4, CR7 etc. have corresponding meanings.

Customs
(Repealed by No 41 of 2015)

customs clearance area
means an area that is designated or set aside for the performance of functions under the Customs Act 1901.

customs dealing
means *AD4b, *AD10 or *AD14b.

customs duty
means any duty of customs imposed by that name under a law of the Commonwealth, other than:

(a) the A New Tax System (Goods and Services Tax Imposition - Customs) Act 1999; or

(aa) the A New Tax System (Goods and Services Tax Imposition (Recipients) - Customs) Act 2005; or

(b) the A New Tax System (Wine Equalisation Tax Imposition - Customs) Act 1999.

Customs Tariff
means the Customs Tariff Act 1995 as amended by any Act, and as proposed to be amended by Customs Tariff Proposals introduced into the House of Representatives.

earlier producer rebate
(Repealed by No 94 of 2017)

eligible Australian traveller
(Repealed by No 176 of 1999)

eligible foreign traveller
(Repealed by No 176 of 1999)

eligible royalty cost
has the meaning given by subsection 5-15(2).

entity
has the meaning given in section 195-1 of the *GST Act.

explanatory section
has the meaning given by section 29-10.

export
, in relation to wine, means export the wine from the indirect tax zone.

Finance Minister
means the Minister administering the Public Governance, Performance and Accountability Act 2013.

financial year
means a period of 12 months beginning on 1 July.

food
has the meaning given by section 38-4 of the *GST Act.

fruit or vegetable wine
has the meaning given by section 31-4.

grape wine
has the meaning given by section 31-2.

grape wine product
has the meaning given by section 31-3.

GST
has the meaning given by section 195-1 of the *GST Act.

GST Act
means the A New Tax System (Goods and Services Tax) Act 1999.

GST-free
has the meaning given by section 195-1 of the *GST Act.

GST group
has the meaning given by section 48-5 of the *GST Act.

GST importation value
of a *local entry is an amount equal to what would be the value of the local entry (disregarding any wine tax payable in respect of the local entry), for the purposes of the *GST Act, if it were a taxable importation within the meaning of section 195-1 of that Act.

For the basic rules on the value of taxable importations, see section 13-20 of the GST Act.

GST joint venture
has the meaning given by section 51-5 of the *GST Act.

half-retail price method
for working out the *notional wholesale selling price of a *taxable dealing is:

(a) if the dealing is a *retail sale - the method set out in subsection 9-35(1); or

(b) if the dealing is an *AOU connected with retail sales of grape wine - the method set out in subsection 9-35(2).

import
means import goods into the indirect tax zone.

importation of goods into Australia
(Repealed by No 176 of 1999)

imported wine
means wine that has been *imported (whether or not the wine was *manufactured in the indirect tax zone).

increase
includes increase from nil.

indirect marketing sale
has the meaning given by section 5-20.

indirect tax zone
has the meaning given by section 195-1 of the *GST Act.

inwards duty free shop
has the same meaning as in section 96B of the Customs Act 1901.

ITAA 1997
means the Income Tax Assessment Act 1997.

joint venture operator
, for a *GST joint venture, has the meaning given by section 195-1 of the *GST Act.

LE1
means the *local entry of that name in the *Local Entry Table, and LE2, LE3 etc. have corresponding meanings.

local entry
has the meaning given by section 5-30.

Local Entry Table
means the table in section 5-30.

locally enter wine under quote
has the meaning given by subsection 31-15(3).

manufacture
includes the following:

(a) production;

(b) combining parts or ingredients so as to form an article or substance that is commercially distinct from the parts or ingredients;

(c) applying a treatment to foodstuffs as a process in preparing them for human consumption;

but does not include any prescribed combination of parts or ingredients.

manufacturer
, in relation to particular wine, means the entity that (not as an employee) *manufactured the wine, whether or not the entity owned the materials out of which the wine was manufactured.

mead
has the meaning given by section 31-6.

member
, in relation to a *GST group, has the meaning given by section 195-1 of the *GST Act.

money
has the meaning given by section 195-1 of the *GST Act.

net amount
has the meaning given by section 195-1 of the *GST Act.

New Zealand
means the territory of New Zealand but does not include Tokelau or the Associated Self Governing States of the Cook Islands and Niue.

New Zealand participant
means an entity that is approved as a New Zealand participant under section 19-7.

non-taxable importation
has the meaning given by section 13-10 and Division 42 of the *GST Act.

notional wholesale purchase price
, in relation to wine, means the *price (excluding wine tax and *GST) for which you could reasonably have been expected to purchase the wine by wholesale under an arm's length transaction.

notional wholesale selling price
has the meaning given by Subdivision 9-B.

obtain wine under quote
has the meaning given by Subdivision 31-D.

participant
, in relation to a *GST joint venture, has the meaning given by section 195-1 of the *GST Act.

partnership
has the meaning given by section 995-1 of the *ITAA 1997.

passed on
, in relation to an amount of tax that has been *borne by an entity, does not include an amount that the entity has passed on to another entity, but has later refunded to that other entity.

premises
, in relation to a supply of *food (other than wine), has the meaning given by section 38-5 of the *GST Act.

prescribed rules for export sales
means the rules prescribed by the regulations setting out conditions that must be complied with in order for dealings with wine to be exempted, or otherwise relieved from wine tax, on the basis of the *export, or intended export, of the wine.

price
has the meaning given by section 9-75 of the *GST Act.

producer
, of wine, means:

(a) an entity that *manufactures the wine; or

(b) an entity that satisfies the following requirements:

(i) the entity (the first entity ) supplies another entity with the *source product from which the wine is manufactured;

(ii) the other entity manufactures the wine on behalf of the first entity.

producer rebate
means a rebate to which a *producer of *rebatable wine is entitled under Division 19.

producer's licence
(Repealed by No 129 of 2004)

purchase wine under quote
has the meaning given by subsection 31-15(2).

quote
means quote an *ABN.

rebatable wine
means *grape wine, *grape wine products, *fruit or vegetable wine, *cider or perry, *mead or *sake.

reduce
includes reduce to nil.

registered
has the meaning given by section 195-1 of the *GST Act.

relevant traveller
has the same meaning as in section 96B of the Customs Act 1901.

representative member
, for a *GST group, has the meaning given by section 195-1 of the *GST Act.

required to be registered
has the meaning given by section 195-1 of the *GST Act.

retail sale
means any sale that is not a *wholesale sale.

royalty
has the meaning given by subsection 9-70(2).

royalty-inclusive AOU
has the meaning given by section 5-15.

royalty-inclusive sale
has the meaning given by section 5-15.

sake
has the meaning given by section 31-7.

sale
includes barter or exchange.

source product
has the meaning given by subsection 19-5(4).

State law
has the meaning given by section 995-1 of the *ITAA 1997.

supply
has the meaning given by section 9-10 of the *GST Act.

taxable dealing
means an *assessable dealing that happens on or after 1 July 2000 for which no exemption is available under Division 7.

taxable supply
has the meaning given by section 195-1 of the *GST Act.

taxable value
means the taxable value that applies under Division 9.

tax-bearing dealing
, in relation to an amount of *wine tax borne by an entity, means the dealing through which, or because of which, the tax was borne.

tax period
has the meaning given by section 195-1 of the *GST Act.

Territory law
has the meaning given by section 995-1 of the *ITAA 1997.

tradex order
has the meaning given by section 4 of the Tradex Scheme Act 1999.

tradex scheme goods
has the meaning given by subsection 141-10(1) of the *GST Act.

untaxable Commonwealth entity
has the meaning given by section 177-1 of the *GST Act.

untaxed AOU
has the meaning given by subsection 5-25(2).

untaxed sale
has the meaning given by subsection 5-25(1).

wholesale sale
means a sale to an entity that purchases for the purpose of resale, but does not include a sale of wine from stock in a retail store (or retail section of a store) to make up for a temporary shortage of stock of the purchaser, if the wine is of a kind that:

(a) is usually *manufactured by the purchaser; or

(b) is usually purchased by the purchaser for resale.

wine
has the meaning given by Subdivision 31-A.

wine tax
means tax that is payable under the *wine tax law and imposed as wine equalisation tax by any of these:

(a) the A New Tax System (Wine Equalisation Tax Imposition - General) Act 1999; or

(b) the A New Tax System (Wine Equalisation Tax Imposition - Customs) Act 1999; or

(c) the A New Tax System (Wine Equalisation Tax Imposition - Excise) Act 1999.

wine tax borne
has the meaning given by Subdivision 31-C.

wine tax credit
means a wine tax credit under Part 4.

Wine Tax Credit Table
means the table in section 17-5.

wine tax law
means:

(a) this Act; and

(b) any Act that imposes wine tax; and

(c) the A New Tax System (Wine Equalisation Tax and Luxury Car Tax Transition) Act 1999 so far as it relates to the Acts covered by paragraphs (a) and (b); and

(d) the Taxation Administration Act 1953, so far as it relates to any Act covered by paragraphs (a) to (c); and

(e) any other Act, so far as it relates to any Act covered by paragraphs (a) to (d) (or to so much of that Act as is covered); and

(f) regulations under an Act, so far as they relate to any Act covered by paragraphs (a) to (e) (or to so much of that Act as is covered).

you
: if a provision of this Act uses the expression you , it applies to entities generally, unless its application is expressly limited.

Note:

The expression you is not used in provisions that apply only to entities that are not individuals.