Wine Equalisation Tax Worksheet (Label 1C)

Complete this worksheet if the business made a taxable sale of wine in the current tax period. The wine equalisation tax (WET) payable is calculated once this worksheet is completed and the total amount is integrated to Label 1C of the Business Activity Statement.

Where the retail sale is to a non arm's-length customer, the price used in the half retail price method must be an arm's-length retail price.

 

Details recorded

Wholesale sale of goods subject to WET: Enter the total price for which the goods were sold, excluding GST and WET.

Retail sale of grape wine: One of two calculations may be used at this item. Enter the total retail sales of grape wine using either:

• the half retail price method, (this amount includes GST) or

• the average wholesale price method, (this amount includes GST and WET).

Retail sale of other than grape wine—(including cider, perry, mead and sake): Enter the total retail sales of wine that is not grape wine; this amount includes GST.

Application to own use connected with the retail sale of grape wine: One of two calculations may be used at this item. Enter the total price of wine that has been consumed, given away (for example, free wine tasting or a promotional give-away) or transferred under a contract. Use either:

• the half retail price method, (this amount includes GST), or

• the average wholesale price method, (this amount includes GST and WET).

Application to own use connected with the retail sale of other than grape wine: Enter the total price of wine that is not grape wine including cider, perry, mead and sake) that has been consumed, given away (for example, free wine tasting or a promotional give-away) or transferred under a contract. This amount is inclusive of GST.

Wholesale sale of wine to a non arm's-length customer: Enter the notional wholesale selling price, which is the price (excluding WET and GST) that the taxpayer could reasonably have been expected to sell the goods by wholesale under an arm's-length transaction.

Clawback of Commonwealth Rebate where the rebate claimed for the year exceeds the rebate allowed: If the rebate previously claimed is greater than the allowable rebate, then a clawback of the rebate is required. This clawback is calculated at the Rebate clawback from overclaim in prior periods field at item 8c, in Label 1D WET Refundable worksheet. Enter that amount into this field.

Example: Half Retail Price Method

A winemaker sells grape wine by retail at the cellar door for $140 a dozen, including GST. As the wine is grape wine, the winemaker has the option of using either the half retail price method or the average price method to work out the amount of wine equalisation tax payable. The winemaker chooses to use the half retail price method so Tax uses the following formula:

Example: Average wholesale price method

The average wholesale price is calculated using the weighted average of the prices (excluding WET and GST) for arm's-length wholesale sales that have been made for grape wine:

• of the same vintage, and

• produced from the same grape varieties or the same blend of grape varieties

During the tax period in which the taxpayer is liable to pay WET on the retail sale or application to own use.

Worked Example:

During a tax period, 70% of a winemaker's wholesale sales of grape wine of a particular vintage and variety are sold to a distributor for $80 a dozen, and the remaining 30% to hotels and restaurants for $90 a dozen.

• The weighted average price of the winemaker's wholesale sales during the tax period would be:

• The amount of WET payable by this method would be:

Average wholesale price of wine x 29%

• Wine equalisation tax payable is: