• Prepare activity statement - wine equalisation tax (WET)

    This section allows you to record details of your wine equalisation tax (WET) obligation for your activity statement.  

    You need to complete this section if you make taxable sales of wine or are claiming WET credits.  

    A taxable dealing is an assessable dealing for which no exemption is available. 

    Do not complete this section if you are paying GST in instalments as previous WET figures have been included in calculations to determine the amount advised.

    If you are using option 3 and paying an instalment amount, you will be required to report WET payable (1C) and WET refundable (1D) each year when you lodge your Annual GST return.

    Do not include any decimal point or cent amounts, round values down to the nearest whole dollar amount. So instead of $124.75 enter $124 only.

    For information on completing this section, select from the options below:

    Screen fields

    1C Wine equalisation tax payable 

    Enter the total WET amount that you are liable to pay in the current reporting period. Common assessable dealings lists the most common assessable dealings and the applicable calculation method.

    1D Wine equalisation tax refundable  

    Enter the amount of WET refundable. Grounds for WET credit lists the most common reasons for WET credits.

    Common assessable dealings

    Wholesale sale of wine

    Is a sale to an entity that purchases the wine for the purpose of resale.

    Calculation is: price for which the wine is sold (excluding WET and GST) x 29%.

    Retail sale of grape wine

    Is any sale that is not a wholesale sale.

    Here you can use either the Half retail price method or the Average wholesale price method, subject to the conditions listed below.   

    Half retail price method  

    Calculation is: (50% of the retail price including WET and GST) X 29%   

    Average wholesale price method  

    You can only use this method if, during the tax period in which the liability to pay WET arises, at least 10% by value of all sales of grape wine is both:

    • of the same vintage as the grape wine to which the dealing relates
    • produced from the same grape varieties, or the same blend of grape varieties, as the grape wine to which the dealing relates.

    The average wholesale price is worked out using the weighted average of the prices (excluding WET and GST) for wholesale sales of grape wine that fall into the above category for the tax period.

    Using the average wholesale price method, you calculate the average wholesale price x 29%.

    Retail sale of wine that is not grape wine 

    For non-grape wine, you must use the Half retail price method.

    Application to own use connected with retail sale of grape wine

    For grape wine, you may use either the Average wholesale price or Half retail price methods to work out the notional wholesale selling price.

    Application to own use connected with retail sale of wine that is not grape wine

    For non-grape wine, you must use the Half retail price method.

    Grounds for WET credit

    Common reasons for WET credits include:

    • you overpaid WET (for example, you used the incorrect rate of tax or incorrect taxable value, or subsequently allowed eligible discounts or rebates)
    • you paid WET twice on the same wine
    • you did not quote your ABN when you purchased wine, even though you were entitled to
    • you sold wine (on which WET had been paid) to someone who quoted an ABN for the dealing and you excluded the WET from the selling price
    • you exported wine (on which WET had been paid) as a GST-free supply. The WET you paid on the wine was excluded from the selling price
    • you wrote-off bad debts that included WET that you paid
    • you are entitled to the producer rebate (note that the producer rebate is limited to $500,000 per financial year for an individual producer or a group of associated producers).

    The total WET refundable for WET credits transfers to 1D on your activity statement.

    For more information on the calculation of WET, refer to Guide to Wine equalisation tax.

    Screen buttons

    Cancel

    Selecting Cancel will return you to the Activity statement list screen. If you choose this option all of the data you have entered will be lost.

    Save and continue

    Selecting Save and continue will save the details you have entered for this activity statement and returns you to the Prepare activity statement screen. The amount will be transferred to 1C and 1D on the activity statement. 


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