Commonwealth Consolidated Acts

INDIRECT TAX LEGISLATION AMENDMENT ACT 2000 - SCHEDULE 9A

A New Tax System (Wine Equalisation Tax) Act 1999

1   At the end of section   17 - 1

Add "Producer rebates under Division   19 are a form of wine tax credit.".

2   Section   17 - 5 (after table item CR8)

Insert:

3   After Division   17

Insert:

Division   19 -- Producer rebates

19 - 1   What this Division is about

Wine producers are entitled to a rebate for certain retail sales and AOUs of wine. The rebate tapers off when these sales and AOUs exceed a particular value. The rebate is provided in the form of a wine tax credit.

Note:   Credit ground CR9 is producer rebates.

19 - 5   Entitlement to producer rebates

Retail sales

  (1)   You are entitled to a * producer rebate for * rebatable wine in respect of a * financial year if:

  (a)   you are the * producer of the wine; and

  (b)   you are liable to wine tax for a * retail sale of the wine during the financial year; and

  (c)   the sale is from premises to which your * producer's licence relates; and

  (d)   the sale does not contravene the * State law or * Territory law under which the licence was issued, or any conditions to which the licence is subject.

  (2)   A sale of wine by mail order or on the Internet is taken to be a sale from particular premises for the purposes of paragraph   (1)(c) if the wine is sold under the * producer's licence to which those premises relate.

AOUs

  (3)   You are also entitled to a * producer rebate for * rebatable wine in respect of a * financial year if:

  (a)   you are the * producer of the wine; and

  (b)   you are liable to wine tax for an * AOU of the wine during the financial year.

Exceptions

  (4)   However, you are not entitled to the rebate for the wine if:

  (a)   in the case of a * retail sale--you sell the wine in the course of providing, to the purchaser of the wine, other * food that is for consumption on the * premises from which it is supplied; or

  (b)   in the case of a retail sale--the sale is by mail order or on the Internet and a commission is payable to a third party for the sale, or a third party deducts an amount as commission from the proceeds of the sale; or

  (c)   in any case--in the * financial year in which the sale or * AOU occurs, your * annual rebatable turnover for the * producer's licence under which the sale or AOU took place is more than $580,000.

19 - 10   Amount of producer rebates

  (1)   If the * annual rebatable turnover of a * producer of * rebatable wine for a particular * producer's licence in a * financial year is $300,000 or less, the amount of the * producer rebates to which you are entitled in respect of that licence for that financial year is 14% of that turnover.

  (2)   If the * annual rebatable turnover of a * producer of * rebatable wine for a particular * producer's licence in a * financial year is more than $30 0,0 00, the amount of the * producer rebates to which you are entitled in respect of that licence for that financial year is:

19 - 15   Estimating amounts of producer rebates for each tax period

  (1)   The Commissioner may determine in writing how a * producer of * rebatable wine may work out estimates of amounts of * producer rebates that the producer may claim for the producer's * tax periods during a * financial year (other than the last tax period of a financial year).

  (2)   An amount worked out in accordance with the determination, for one of the * tax periods applying to you, is treated as an amount of a * wine tax credit:

  (a)   to which you are entitled; and

  (b)   that arises during that tax period (even though under section   17 - 5 it would arise at a later time).

  (3)   The amount of the * producer rebate to which you are entitled in respect of the * financial year is taken to be reduced by the sum of the amounts worked out under subsection   (2) that you claim for * tax periods during the financial year.

  (4)   However, if the sum of the amounts worked out under subsection   (2) that you claim for * tax periods during the * financial year exceeds the amount of the * producer rebate to which you are entitled in respect of the financial year:

  (a)   you are liable to pay an amount equal to that excess; and

  (b)   the amount is to be treated as if it were wine tax payable by you at the end of the financial year, and, for the purposes of Part   5, were attributable to the last tax period of the financial year.

19 - 20   Annual rebatable turnover

    The * annual rebatable turnover of a * producer of * rebatable wine for a particular * producer's licence in a * financial year is the sum of:

  (a)   the * notional wholesale selling prices of all * retail sales of rebatable wine the producer makes in that financial year that are sales:

  (i)   made under the licence; and

  (ii)   to which subsection 19 - 5(1) applies; and

  (b)   the notional wholesale selling prices of all * AOUs of rebatable wine the producer makes in that financial year that are AOUs:

  (i)   made under the licence; and

  (ii)   to which subsection 19 - 5(3) applies.

4   Section   33 - 1

Insert:

"annual rebatable turnover" has the meaning given by section   19 - 20.

5   Section   33 - 1

Insert:

"financial year" means a period of 12 months beginning on 1   July.

6   Section   33 - 1

Insert:

"food" has the meaning given by section   38 - 4 of the * GST Act.

7   Section   33 - 1

Insert:

"ITAA 1997" means the Income Tax Assessment Act 1997 .

8   Section   33 - 1

Insert:

"premises" , in relation to a supply of * food (other than wine), has the meaning given by section   38 - 5 of the * GST Act.

9   Section   33 - 1

Insert:

"producer" , of * rebatable wine, means an entity that:

  (a)   * manufactures the wine, or supplies to another entity the grapes, other fruit, vegetables or honey from which the wine is manufactured; and

  (b)   holds a * producer's licence.

10   Section   33 - 1

Insert:

"producer rebate" means a rebate to which a * producer of * rebatable wine is entitled under Division   19.

11   Section   33 - 1

Insert:

"producer's licence" means a licence, issued under a * State law or a * Territory law, to make * retail sales of wine from particular premises:

  (a)   as a wine producer or a vigneron; or

  (b)   in a similar capacity determined in writing by the Commissioner.

12   Section   33 - 1

Insert:

"rebatable wine" means * grape wine, * grape wine products, * fruit or vegetable wine or * mead.

13   Section   33 - 1

Insert:

"State law" has the meaning given by section   995 - 1 of the * ITAA 1997.

14   Section   33 - 1

Insert:

"Territory law" has the meaning given by section   995 - 1 of the * ITAA 1997.