The entity may be entitled to a credit from earlier instalments for the same income year if a varied instalment rate was used and the varied instalment rate is less than the advised instalment rate.
A variation credit will occur only when those earlier instalments were worked out using a higher instalment rate. This credit is offset against the other liabilities on the activity statement (that is, it will be included in the net amount payable or refundable on the activity statement).
Instalments for earlier quarters: Enter the instalments for each quarter. These amounts have been entered at Label 5A of previous activity statements of the income year. Include any amounts not yet paid.
Credits claimed for earlier quarters: Enter the credits claimed for each quarter in the income year. These amounts have been entered at Label 5B of previous activity statements of the income year.
Instalment income for earlier quarters: Enter the instalment income for each quarter in the income year. These amounts have been entered at Label T1 of previous activity statements for the income year.
Instalment rate used for the current quarter: Enter the rate for calculating a percentage of the instalment income (in step 3., above).
Amount of credit available to claim: This amount is calculated as follows:
Instalment income x Instalment rate - Net instalments paid
If the result is positive, this is recorded at Label 5B as the amount of credit claimed.
Company XYZ has paid earlier instalments of $12,000 and $10,000.
It claimed a credit of $4,000 in the second instalment quarter.
It decides to vary its instalment rate for the third quarter to 8% because of a reduction in the profit margin on sales due to increased competition. Company XYZ had varied its instalment rate for the second quarter to 10% and this is shown at Label T2.
The total instalment income from the earlier quarters during the income year is $180,000.
As Company XYZ's varied instalment rate is less than the instalment rate pre-printed at T2 the company is entitled to a credit from earlier instalments for the income year.
$12,000 (earlier instalment) + $10,000 (earlier instalment)
$4,000 (total of earlier credits)
$22,000 (Step 1) - $4,000 (Step 2)
$180,000 (instalment income for earlier instalment quarters)
$180,000 (Step 4) x 8% (varied rate)
$18,000 (Step 3) - $14,400 (Step 5)
Company XYZ can claim a credit of $3,600. Record this at Label 5B.
The WET Act provides a rebate of wine tax for producers of rebatable wine that are registered or required to be registered for GST in Australia. From 1 October 2004 to 30 June 2006, the maxi-mum amount of rebate that an Australian producer (or group of associated producers)3 could claim in a full financial year was A$290,000, effectively offsetting wine tax on AU$1 million (wholesale value) of eligible sales and applications to own use per annum.
11. From 1 July 2006, the maximum amount of rebate an Australian producer (or group of asso-ciated producers) can claim in a full financial year is AU$500,000, which equates to approximately A$1.7 million (wholesale value) of eligible sales and applications to own use per annum.4
The amount of the producer rebate is:
for wholesale sales, 29% of the price for which the wine is sold6 (excluding wine tax and GST).
for retail sales and AOUs, 29% of the notional wholesale selling price of the wine.
From 1 July 2005, access to the producer rebate was extended to eligible New Zealand wine producers that have their wine exported to Australia. The operation of the producer rebate for New Zealand participants is described in Wine Equalisation Tax Ruling WETR 2006/1 Wine equalisation tax: the operation of the producer rebate for producers of wine in New Zealand.
From 10 December 2012, where a producer blends or further manufactures wine using wine produced by another producer, the amount of rebate for the blended or further manufactured wine is reduced by the sum of any rebate amounts attributable to the other producer's wine.
Who is eligible for the rebate?
Wine producers, including those who supply grapes to contract wine makers to be made into wine, are eligible for the Commonwealth rebate. However, producers who supply grapes to contract wine makers must have some involvement in the wine making process and assume some financial risk in relation to the wine produced. This means a producer who does not own the production facilities may be eligible for the rebate.
Producers may have a cellar door outlet and also operate a restaurant or cafe from the same or an adjacent site. In these circumstances, they are eligible for the Commonwealth rebate only for retail sales made from the cellar door outlet. They are not eligible for a rebate for retail sales made from the restaurant or cafe under the restaurant licence. However, where wine is purchased from the cellar door and consumed in the restaurant under a BYO licence, the wine is eligible for the rebate.
People purchasing bottled wine or bulk wine for bottling and sale by cellar door or mail order are not eligible for a rebate on this wine.