Origin Of The Wine Equalisation Tax

1354 Words Nov 10th, 2015 6 Pages
Introduction Wine production is a major industry in Australia that is vital to the nation’s economy. In Australia, wine is subject to two taxes. Wine is subject to the Goods and Services Tax as well as the Wine Equalisation Tax. The Wine Equalisation tax is a values-based tax that is placed on all wine that is consumed in Australia (Wine Equalisation Tax, 2015). It applies to all grape wine and grape wine products that have a minimum alcoholic volume of 1.15% (Wine Equalisation Tax, 2015). Furthermore, it affects wine manufacturers, wholesalers, and importers (Goods and Services Tax, 2015). Though it may seem odd to implement an additional tax to a specific group of products, the wine industry has been subject this type of tax since 1930. These early policies have evolved into what is now the Wine Equalisation Tax. This supplemental tax has been a source of much distress and debate amongst Australian winemakers for several reasons. This essay will examine the origins of the Wine Equalisation Tax, the effects it has had on society, as well as some potential alternatives to this tax.
Overview of The Wine Equalisation Tax As stated above, the Wine Equalisation Tax is a values based tax placed on all grape wine and grape wine products consumed in Australia that affects all wine manufacturers, wholesalers, and importers (Wine Equalisation Tax, 2015). More specifically, this tax applies to grape wines such as fortified and sparkling wines, wines made from other fruit and…

More about Origin Of The Wine Equalisation Tax

Open Document