LIMESTONE Coast Grape and Wine Council chairman Pete Bissell has welcomed adjustments to the Wine Equalisation Tax (WET), but flagged restrictions may still impact negatively on regional grape growers.
The Treasury Laws Amendment Bill has passed resulting in wine producers now required to own at least 85pc of the grapes used throughout the wine making process.
The rebate will also be capped at $350,000, down from $500,000.
Mr Bissell said restrictions on eligibility would help prevent multiple claims being made on the same wine, however removing WET rebates from bulk wine could impact negatively.
“This may cause financial strain to grape growers in particular who have been making bulk wine,” Mr Bissell said.
He said the reformed WET enforced ownership over grapes before they were crushed and then put into branded products owned by the same entity.
“Quite a few producers will no longer qualify for the WET rebate and those that do will receive less rebate than previously,” Mr Bissell
said.
“A number of grape growers who were not contracted have been making bulk wine and have been able to claim the WET rebate on this, which has in turn made these producers profitable again.”
Mr Bissell said the reformed WET ensured the system was more accountable, however all those involved will have lost something – not just those making multiple claims.
“The sector may need some time for the specifics of the rules to settle down so all involved have the time to adjust,” he said.
Member for Barker Tony Pasin welcomed the WET reforms saying they will stop the rebate being claimed multiple times on the same wine through the production chain.
“These reforms will make it a fairer playing field and help prevent rorting of the system,” Mr Pasin said.
