Discussion paper - Wine Equalisation Tax rebate
This paper is intended to stimulate public discussion on how the WET rebate scheme may be contributing to distortions in the production of wine and seek feedback on what opportunities there might be to better target the support that the rebate offers.
The wine industry has been an Australian success story, enjoying a sustained period of rapid growth in the 1990s and early 2000s. However the industry has faced significant challenges since that time. In particular, low wine grape prices and weaker export performance have put pressure on Australian winemakers and grape growers, many of whom are believed to be operating below cost of production in recent years. There is a growing consensus that the Australian wine industry is currently experiencing a period of sustained oversupply of wine and wine grapes and that the industry will need to adjust in order to grow and prosper.
The Government’s objective is to achieve a better tax system that delivers taxes that are lower, simpler and fairer. This discussion paper seeks to better inform discussion and analysis of the WET rebate as part of the Tax White Paper process and ongoing Government policy development.
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