Wine Equalisation Tax Ruling

WETR 2002/2W

The operation of the wine equalisation tax system

• Please note that the PDF version is the authorised version of this withdrawal notice.
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FOI status:

may be released

Notice of Withdrawal

Due to Act No 129 of 2004 - Tax Laws Amendment (Wine Producer Rebate and Other Measures) Act 2004 receiving Royal Assent on 31 August 2004, Wine Equalisation Tax Ruling WETR 2002/2 is withdrawn with effect from 15 December 2004. The Ruling will be replaced by Wine Equalisation Tax Ruling WETR 2004/1.

The differences between the two Rulings are explained below.

Reason for Withdrawal

1. The Tax Laws Amendment (Wine Producer Rebate and Other Measures) Act 2004 amended the A New Tax System (Wine Equalisation Tax) Act 1999 (the WET Act) by introducing a new producer rebate to replace the cellar rebate scheme with effect from 1 October 2004 and two compliance improvement measures. An Addendum to Wine Equalisation Tax Ruling WETR 2002/2 was issued indicating that the paragraphs relating to the cellar door rebate scheme were not applicable from 1 October 2004. WETR 2002/2 has now been updated to include the new producer rebate provisions and reference to one of the compliance improvement measures. The new ruling also contains some other minor changes to reflect the correct interpretation of the WET Act.

Paragraphs of the new Ruling and an explanation of what has changed from WETR 2002/2

Date of Effect - Paragraph 7

2. The date of effect of the new Ruling is from its date of issue.

Paragraph 28 - Retail sales

3. The A New Tax System (Wine Equalisation Tax) Act 1999 has been amended by the Tax Laws Amendment (Wine Producer Rebate and Other Measures) Act 2004. The amendments include new assessable dealings AD2f and AD12f which create a liability to WET for a person who buys wine which has already borne WET, bottles/packages the wine and sells the wine by retail. A further dot point has been added to the end of paragraph 28 of WETR 2002/2 to highlight the change.

Paragraphs 62, 69 and 70 - Quoting

4. The A New Tax System (Wine Equalisation Tax) Act 1999 has been amended by the Tax Laws Amendment (Wine Producer Rebate and Other Measures) Act 2004. The amendments introduced a new producer rebate and as part of the rebate persons who purchase wine from producers under quote are required to notify the producer if it is their intention to make a GST-free supply of the wine. Paragraphs 62, 69 and 70 have been added to highlight this requirement for a purchaser to notify the producer if it is their intention to make a GST-free supply of the wine.

Paragraphs 121 to 129 and 130 to 135 - Producer rebate

5. The A New Tax System (Wine Equalisation Tax) Act 1999 has been amended by the Tax Laws Amendment (Wine Producer Rebate and Other Measures) Act 2004. The amendments introduce a new producer rebate to replace the cellar door rebate. Paragraphs 117 to 119 and 151 to 155 of WETR 2002/2 have been replaced by paragraphs 121 to 129 and 130 to 135 which give details of the new producer rebate.

Paragraphs 142 and 143 - Credits

6. Paragraph 162 of WETR 2002/2 is incorrect. The effect of sections 17-10(1) and 21-15 of the WET Act and section 36(1) of the Taxation Administration Act 1953 is that for a person who is registered or required to be registered for GST the claim for credit must be made within 4 years after the end of the tax period in which the credit arises. New paragraphs 142 and 143 provide the correct interpretation.

Revised definition of fruit or vegetable wine - Appendix A

7. The definition of fruit or vegetable wine in WETR 2002/2 did not correctly interpret the definition in section 31-4 of the WET Act. The definition in the Ruling has been changed to state that grape spirit or neutral spirit can only be added to a beverage that is already fruit or vegetable wine. This is the ATO view and an ATO ID is in the course of being finalised (it has had technical approval).

Revised formats for quoting - Appendix B

8. The A New Tax System (Wine Equalisation Tax) Act 1999 has been amended by the Tax Laws Amendment (Wine Producer Rebate and Other Measures) Act 2004. The amendments introduced a new producer rebate and as part of the rebate persons who purchase wine from producers under quote are required to notify the producer if it is their intention to make a GST-free supply of the wine. Accordingly, quoting formats contained in Appendix B have been updated so that the person quoting can notify the producer if they intend to make a GST-free supply of the wine being purchased and two new formats introduced to compliment the periodic quote.

Formats updated:

1.

Single purchase quotation

2.

Periodic quotation

New Formats:

1.

Periodic quotation in place - notification of intention to make a GST-free supply

2.

Periodic quotation in place - notification of intention not to make a GST-free supply

Commissioner of Taxation
15 December 2004

References

ATO references:
NO 2003/11684