NSW Wine welcomes WET rebate reform

The Government, in consultation with a cross section of industry, has amended its decision in the May budget to reduce the WET rebate cap in two stages from $500,000 to $290,000. Today, it announces it will reposition the cap at $350,000 and couple this with a $100,000 grant scheme focusing on investment at the cellar door.  These changes will take effect from 1 July 2018.

President of the NSW Wine Industry Association Tom Ward said that the WET rebate is critical to rural and regional communities and jobs. 

“The changes announced are a very positive outcome for small and medium winemakers and reflects industry calls for a re-focus of investment at the local level.” Mr Ward said.  “Critically, the deferral of the rebate reduction to 1 July 2018 will allow the industry more time to adjust.  The announcement of a grant scheme focusing on cellar doors is also seen as a positive step and we look forward to working with Government to ensure industry continues to benefit.”

Mr Ward also praised the role played by Senator Anne Ruston in driving the consultation process. 

“This is a complex issue with the potential to harm the industry.” Mr Ward said.  “The announcement today is a good compromise and mitigates the overall impact of the changes on those wineries with investment in cellar Door.  Wineries can now go into the 2017 vintage with a higher degree of certainty and confidence.”

Mr Tony Battaglene, CEO of the Winemakers Federation of Australia which has coordinated the national negotiations, said the wine industry throughout Australia has fought long and hard for reform of the WET rebate eligibility criteria.   

“Today’s decision will put an end to uncertainty and put the industry in a stronger long-term position,” Tony Battaglene, WFA CEO said.  “The return of integrity to the WET rebate was the main consideration for WFA. The measures announced today deliver on that need.”

“An outcome of a cap at $350,000, combined with the acceptance of industry’s eligibility definitions, and the $100,000 grant scheme, is significantly better than the Budget 2016 outcomes and provides a platform for future growth. The revised eligibility criteria also strengthens the industry by recognising alternative business models including emerging winemakers who are making their start.”

The WET imposes a 29 per cent tax on wine products, separate to the GST, and the capped rebate is used by the industry to reinvest in their businesses to create growth and jobs in rural and regional Australia.