WET Refundable Worksheet (Label 1D)

Complete this if more wine equalisation tax (WET) than was properly payable has been paid by the business.

To be refundable, the wine equalisation tax must not have been passed on to the purchaser or, if passed on, must have since been refunded to the purchaser.

All claims for refunds must be made within four years of the time when the credit ground (reason for claiming a credit) arises.

Amount of WET Paid

For all of these items (except item 8), amounts may be entered in the Amount of WET Paid (that is, the original amount of WET payments, including the overpayment) and Amount Overpaid column (this is the total that integrates to Label 1D of the activity statement.)

1. The entity overpaid WET because either:

• the incorrect rate of tax or incorrect taxable value were used, or

• eligible discounts or Commonwealth rebates were allowed.

• The WET was paid twice.

• The entity did not quote its ABN when the wine was purchased.

• The entity sold wine that was subject to WET, for a price that excluded the tax, to persons who quoted an ABN for the dealing.

• The entity exported wine that was subject to WET.

• The entity sold wine that was subject to WET, for a price that excluded the tax, to an eligible traveller in accordance with the prescribed rules for export sales.

• The entity has written off bad debts that included WET paid.

• Commonwealth Rebate:

1. Enter the estimated rebatable dealings for the year.

   1. Where the estimated rebatable dealings (ERD) for the year are less than $300,000, complete 8a. Where they are greater, complete 8b.

   2. Where the ERD were less than $300,000 enter the actual rebatable dealings for the period. Rebate claimable for the period is equal to 14% of the actual rebatable dealings entered.
   3. Where the ERD are greater than or equal to $300,000 the rebate is calculated as follows:
      1. Maximum Commonwealth rebate (for the year) = $42,000 less
      2. 15% of the ERD for the year greater than $300,000 divided by
      3. Number of lodgment periods for the year
   4. Rebate claimable in the final tax period
      1. To calculate the rebate for the final tax period:
      2. Enter the actual reportable dealings for the year.

2. Enter the rebates claimed in earlier periods.

The difference between the estimate of rebates claimed and the actual rebate claimable is the rebate claimable for the final tax period.

Where the rebate claimed in earlier periods is greater than the actual rebate claimable, that amount is displayed in the Rebate Clawback field. Enter this amount into item 7 of Label 1C WET Payable worksheet.

Commonwealth Rebate

The taxpayer may also be entitled to a Commonwealth rebate for certain assessable dealings in wine.

Wine Equalisation Tax Refund Examples

Example: Wine Equalisation Tax Credit

A wine wholesaler purchases a dozen bottles of wine from a winemaker but forgets to quote her ABN for the transaction. The winemaker charges $100.00 for the wine plus WET of $29.00 plus $12.90 GST, a total of $141.90. The wholesaler is entitled to a credit of $29.00. She will have a WET liability when she sells the wine.

Example: Commonwealth rebate where the estimated wholesale value of rebatable dealings for the financial year is $300 000 or less

A winery estimates the wholesale value of its total rebatable dealings for the financial year will be less than $300 000. The winery lodges a quarterly activity statement and has the following rebatable dealings for the first two quarters:

If the wholesale value of rebatable dealings for the fourth quarter is $90,000, the total wholesale value of rebatable dealings for the financial year is $315,000 and the rebate is calculated as follows:

Example: Commonwealth rebate where the wholesale value of rebatable dealings for the financial year is between $300,000 and $580,000

A winery estimates that the wholesale value of rebatable dealings for the financial year will be between $300,000 and $580,000.

Say the winery lodges a quarterly activity statement and estimates its rebatable dealings for the financial year will be $430,000, its estimated rebate for the year is as follows:

The winery can claim a Commonwealth rebate of $5,625 ($22,500 / 4) on its activity statement for each of the first three quarters. If the winery's actual rebatable dealings for the year are $450,000, the rebate claimed on its activity statement for the fourth quarter will be $2,625, calculated as follows: