Last Updated: November 22, 2014

Weather: Canberra 11°C - 32°C . Becoming sunny.

Horticulture

Tax office cracking down on rorts of the wine equalisation tax producer rebate

All vine: The Australian Taxation Office is cracking down on rorts of the wine equalisati

All vine: The Australian Taxation Office is cracking down on rorts of the wine equalisation tax producer rebate and urging people to give themselves up. Source: News Limited

Grape expectation: The Australian Taxation Office is cracking down on rorts of the wine e

Grape expectation: The Australian Taxation Office is cracking down on rorts of the wine equalisation tax producer rebate and urging people to give themselves up. Source: News Limited

< Prev

 of 2

Next >

THE Australian Taxation Office is cracking down on rorts of the wine equalisation tax producer rebate and urging people to give themselves up.

Wine Victoria chairman Damien Sheehan said up to 90 per cent of Victoria’s wineries relied on the rebate to remain viable.

A spokeswoman confirmed the ATO was conducting criminal investigations into allegations of fraud by nine unnamed “entities”.

These included fictitious transactions, falsification of documents, non-payment and/or reporting of WET liabilities and falsely purchasing wine products under the quote system, which were then exported overseas.

“The ATO has received a number of voluntary disclosures from taxpayers relating to their involvement in WET rebate arrangements,” the spokeswoman said.

“Voluntary disclosure will result in significant penalty reductions.”

The ATO last year issued a Taxpayer Alert to warn people against taking part in schemes to avoid paying WET or exploit the producer rebate and encouraged those who had to voluntarily disclose their involvement.

“The ATO’s approach to addressing exploitation of the rebate is supported by the Winemakers’ Federation of Australia,” she said.

“Such arrangements undermine the intent of the rebate to assist small producers. These arrangements exploit the rebate, placing genuine producers and winemakers at a commercial disadvantage.”

WFA president Tony D’Aloisio in December called for the rebate to be scrapped for foreign winemakers and bulk wines intended for the private labels of retailers.

Wine Victoria’s Damien Sheehan said the rebate was crucial to the viability of the state’s wine industry, which was mostly made up of small producers in regional areas.

He said a recent survey found 60 per cent of Victorian producers relied on the rebate for their profitability, but analysis found the level could be as high as 90 per cent under current market conditions.

“We need to be realistic and vigilant about retaining the rebate,” he said. “We’re on the same page as WFA in terms of trying to get back to the original intent of that rebate … to support small guys with operations in regional areas.”

The wine producer rebate was introduced in October 2004 to help Australia’s large number of small winemakers.

According to government documents, WET rebates for 2008-09 totalled $221 million from a gross revenue of $950 million.

The rebate was extended in July 2005 to New Zealand producers who sold wine in Australia and their payments rose from $5 million in 2006-07 to more than $19 million in 2009-10.

Have your say

Skip to:
Read comments
Add comments

Add your comment on this story

Comments Form

1200 characters left

Your details
Post Options

Fiji ginger imports review hastened

 26/03/2001 PIRATE: 17/03/2001. Food - ginger root.

THE import conditions for Fijian ginger will be revisited following the start of trade earlier this year.

Abalone farming expanded in WA

Abalone farming expanded in WA

AN ABALONE aquaculture project will be expanded in Western Australia.

Mango exports set to double

 Everyone�s favourite fruit (mangoes) will soon come into season in the Far North. Warren Jonsson's chats about ...

AUSTRALIA is aiming to double its mango exports.

Almond giant posts $29m profit

Select Harvests managing director Paul Thompson at the company's Thomastown plant. with almonds.

AUSTRALIAN almond giant Select Harvests has posted a net profit of $29 million for 2013-14.

New approach to grapevine disease

New approach to grapevine disease

GRAPEVINE trunk disease could be controlled by prevention techniques and certain combinations of root stock and varietals.

ABC ‘won’t walk away’

APAL energy-saving orchard walks, Ardmona

UPDATE: ABC boss Mark Scott says he’s “not going to walk away” from emergency broadcasting.

East clubs discuss options

Warburton goal posts

ELLINBANK and District League’s east division clubs are examining their options after a board of management meeting.

Almond giant posts $29m profit

Select Harvests managing director Paul Thompson at the company's Thomastown plant. with almonds.

AUSTRALIAN almond giant Select Harvests has posted a net profit of $29 million for 2013-14.

Header sure to have wide appeal

Header sure to have wide appeal

THE first commercially available 60-foot header front is in service in western NSW and on its way to Victoria.

Cotton on to Morgan

Cotton on to Morgan

AN OCEAN Grove illustrator has sewn up a deal with a global clothing brand.

Grow it and they will come

FARM Green Olive at Red Hill

GREG and Sue O’Donoghue started a farm with olives, then added grapes, sheep, chooks, vegies and herbs. Then they opened their gate to visitors.