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Australia Wine Equalisation Tax Guide

the Australian Wine Equalisation Tax (WET). The guide covers: the WET rate at 29% — the 'WET' is the 'wine equalisation tax' imposed under the 'A New Tax System (Wine Equalisation Tax) Act 1999'; the WET is the 'ad valorem tax' at 29% of the 'wholesale value of the wine' (the 'WET-inclusive value'); the 'WET' applies to the 'wine' that is 'produced in Australia' or 'imported into Australia' — the 'wine' includes the 'grape wine', the 'fruit wine', the 'vermouth', the 'sake', the 'cider' (the 'cider' is NOT subject to the 'WET' — the 'cider' is subject to the 'excise duty'), the 'beer' (NOT subject to the 'WET'), and the 'spirits' (NOT subject to the 'WET'); the WET producer rebate — the 'WET producer rebate' is the 'rebate' of the 'WET' for the 'Australian wine producers' (the 'producers of the wine in Australia'); the 'WET producer rebate' is up to $350,000 per year (from the 2024-25 income year, the rebate was reduced from $500,000 to $350,000 under the 'WET rebate reforms'); the 'WET producer rebate' is calculated as 29% of the 'wholesale value of the wine' (the 'WET payable' on the 'wine' that is 'sold by the producer'); the 'producer' must be the 'Australian producer' (the 'winemaker' who 'grows at least 85% of the grapes' or 'contracts the wine production'); the 'WET producer rebate' is 'capped' at $350,000 per 'producer' per 'financial year'; the WET-exempt wines — the 'wine' that is 'exported' (the 'export of the wine from Australia') is 'WET-free' (the 'WET does NOT apply to the wine that is exported'); the 'wine' that is 'used for the commercial purposes' (the 'wine for the manufacturing' or the 'wine for the industrial purposes') may be 'WET-free'; the 'cider' (the 'apple cider' and the 'pear cider') is NOT subject to the 'WET' (the 'cider' is subject to the 'excise duty' under the 'Excise Act 1901'); the WET calculation — the 'WET' is calculated as 29% of the 'wholesale value'; the 'wholesale value' is the 'sale price' of the 'wine' in the 'wholesale transaction' (the 'sale by the producer to the wholesaler' or the 'sale by the importer to the wholesaler'); the 'wholesale value' includes the 'WET' (the 'WET-inclusive value') — the 'WET' is calculated 'within the value' (the 'tax-inclusive' calculation): the 'WET' = 29/129 × the 'wholesale price that includes the WET'; the 'WET' is 'payable quarterly' (the 'WET returns' through the 'BAS' — the 'Business Activity Statement').

WET Rate & Calculation

  • 29% of the wholesale value: The 'WET' is the 'ad valorem tax' at 29% of the 'wholesale value of the wine'. The 'wholesale value' is the 'price paid by the wholesaler to the producer'.
  • Tax-inclusive calculation: The 'WET' is calculated 'within the value' — the 'WET' = 29/129 × the 'wholesale price (the WET-inclusive price)'. For example, the 'wholesale price of $100 per bottle' — the 'WET' = 29/129 × $100 = $22.48.
  • Imported wine: The 'imported wine' is subject to the 'WET' at the 'customs clearance'. The 'WET' is calculated on the 'customs value' plus the 'customs duty' plus the 'GST'.

For the GST on the wine sales and the BAS lodgement, see our GST Guide →.

WET Producer Rebate

  • $350,000 cap: The 'WET producer rebate' is up to $350,000 per 'producer' per 'financial year'. The 'rebate' was reduced from $500,000 under the 'WET rebate reforms'.
  • Eligibility: The 'Australian wine producer' who 'produces the wine in Australia'. The 'producer' must 'grow at least 85% of the grapes' or 'contract the wine production with the winemaker'.
  • Claim: The 'WET producer rebate' is claimed in the 'Business Activity Statement (BAS)'. The 'rebate' reduces the 'WET payable' or provides the 'refund' if the 'rebate exceeds the WET payable'.

For the excise duty on the beer and the spirits, see our Excise Duties Guide →.

WET-Exempt Supplies

  • Wine export: The 'wine exported from Australia' is 'WET-free'. The 'export' must be the 'physical export of the wine' from Australia (the 'export documentation' is required).
  • Cider: The 'cider' (the 'apple cider' and the 'pear cider') is NOT subject to the 'WET'. The 'cider' is subject to the 'excise duty' under the 'Excise Act 1901'.
  • Industrial use: The 'wine used for the manufacturing' (the 'wine for the vinegar production' or the 'wine for the industrial purposes') is 'WET-free'.

For the excise duty rates and the wine export concessions, see the ATO website (www.ato.gov.au/wet).

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