High wine tax
| Problem statement | Investors in Australia pay tax for buying wine even if it’s for investing. European wine investors can buy Inbond (no duty or tax until wine is retrieved from the warehouse). When it’s retreived, the current tax is paid |
|---|---|
| Current solution(s) | inbond warehousing |
| Proposed solution(s) | 1. In-bond warehousing in Australia 2. Easy access to in-bond warehousing overseas |
| Additional Comments | |
| Case Studies | BBR, Wine trading, any wine warehouse |
| Frequency (1 - 5) | 1 |
| Impact Size (1 - 5) | 4 |
| Intensity (1 - 5) | 1 |
| Next Steps | Ask why isn’t bonding in Australia? If AU wine is bonded in UK, why not bond it here and sell to europe? |
| Top Risks / Pass Reason | Not much, fairly innocent |
| Total Score | 6 |
| Status | Research |
| Who has the problem | - Wine buyers - Wine collectors - Wineries |
| Theme | Wine Industry |
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WET = 29%, payable on the last wholesale sale e.g. wine importer to wine retailer or wine maker direct to customer
- WET = Wine Equalization Tax - paid by wine makers, importers or wholesalers when selling
- WET = 29% wholesale value, only payable if you’re registered for GST
- designed to be paid on the last wholesale sale of wine (usually between wholesaler and retailer)
- Applied in D2C
- Also applied if I import wine
Wine equalisation tax
Wine equalisation tax (WET) is a once-off tax on certain wine transactions in Australia.