Apr 24, 2012
Tax on Wine in Australia is hefty and complicated for someone who does not know how it works.
Prior to the GST , sales tax on wine was set at 40%. When GST was brought in in 2000, it was soon realised that to just have a 10% tax would reduce the cost of wine to the consumer by 30%.
To ensure there was no drop in tax collected, the WET or Wine Equalisation Tax, as established, and set at $29%.
Example of how the taxes are added to your wine.
We sell wine to a retailer for $120.00 a dozen before tax;
Plus WET @ 29% $ 34.80
($120 x 29/100)
Sub total $154.80
Plus GST @ 10% $ 15.48
($154.80 x 10/100)
Total cost to the retailer $170.28
This table may be of interest as it shows the breakdown of costs in an average $15.00 bottle of wine. Although done 4 years ago it still is a pretty good indicator of the breakdown. So 24% of the cost of the $15.00 is tax.
| Cost | proportion | |
| GST | 1.35 | 9% |
| WET (Wine Equalisation Tax) | 2.25 | 15% |
| Retail Margin | 3.45 | 23% |
| Distributor (Wholesale Margin) | 1.95 | 13% |
| Winery Costs | 4.69 | 31% |
| Grape Costs | 0.86 | 6% |
| Winery Margin | 0.45 | 3% |
| Total | 15.00 | 100% |
