Wine Equalization Tax (WET)

Wine equalization tax (WET) in Australia is a type of tax to be paid by wine producers, importers, and wholesalers.

 

The beverages with more than 1.15% ethyl alcohol which are considered as wine and are subject to WET are:

 

  1. grape wine, including sparkling and some fortified wine

  2. grape wine products (such as marsala)

  3. fruit wines and vegetable wines

  4. cider and perry (but WET does not apply to all of them)

  5. mead

  6. sake

 

Note: Fortified wine is the type of wine with less than 22% of ethyl alcohol volume. Among all the above mentioned, the first three types are capable to be fortified.

Red Wine

Alcoholic Beverages Excluded from WET:

 

The following are the beverages which are not subject to WET, however, if they are produced in Australia or imported, excise duty and customs duty will apply to them respectively (Provided that the ethyl alcohol volume is more than 1.15%):

 

  • beer

  • spirits

  • liqueurs

  • pre-mixed spirits

  • some flavoured ciders

  • ready-to-drink designer drinks

  • clear or characterless grape alcohol-based products.

 

Who Must Register for WET:

 

It is necessary and obligatory to register for WET if the following conditions are met:

 

  • Producers or Wholesalers of Wine (As defined above)

  • Already registered for Goods and Service Tax (GST)

  • Retailers who bottles their own wine or wholesale the wine

Grape and Wine

Registration Consequences:

 

BAS statements will have labels to report for each tax period:

 

  • WET Payable

  • WET credits

 

How to Register for WET:

 

WET registration can be done through:

 

 

Note: The same ways are used to cancel your WET registration.

 

Exempt Transactions from WET:

 

  1. When wines is already sold under a wholesale transaction. For example, when producer has sold the wine to the distributor in a wholesale manner and then distributor sells the wine to retailer. Here, the sales transaction between distributer and retailer is not subject to WET. This type of transactions are called The transaction happens 'under quote'

  2. When GST does not apply to wine. For example, wine is exported from Australia.

 

How much to pay for WET?

 

Wine wholesalers and producers must pay 29% of the wholesales taxable value excluding GST and WET. This value contains the dealings which are assessable like sales price, imports and own use of wine.

 

However, some of the costs may or may not affect the wholesale taxable value.

 

Since WET calculation is complex, we highly advise you to contact us for your WET reports.