Levy Payments
Federal legislation requires the payment of levies by wine producers and exporters to help fund the activities of the Wine Australia and the Grape and Wine Research and Development Corporation. Some exemptions apply.
Detailed information sheets, rates and return forms can be found on the Australian Government’s Levies Revenue Service website. The following provides general information on the Winegrape Levy, Grape Research Levy and the Wine Export Charge.
Winegrape Levy
Relevant legislation
Overview
Schedule 26 (Clause 6) of the Primary Industries (Excise) Levies Act 1999 imposes a levy on "prescribed goods used at a winery in Australia ... in the manufacture of wine" payable by the owner of the goods at the time they were first subjected to the winemaking process. In the case of contract processing, this is the owner of the grapes, not the owner of the winery at which the processing took place.
The Levies Revenue Service (LRS) within the Department of Agriculture, Fisheries and Forestry audits the grape intake of all wineries and accounts for all grapes crushed at each winery. If a winery contracts to crush grapes for a third party, the onus is on the winery to disclose the arrangement to the LRS. The LRS follows up the third party for payment of the wine grape levy.
The Act provides that the levy "in respect of any prescribed goods used at a winery during a year in the manufacture of wine is payable by the producer." (Clause 8)
Definition of "Prescribed goods"
The Act defines prescribed goods as "(a) fresh grapes; (b) dried grapes; and (c) grape juice, whether single-strength or concentrated; being grapes or grape juice produced in Australia." (Clause 1)
Definition of "Winery"
The Act provides that "premises are taken to be a winery during a year if the quantity (if any) of fresh grapes, together with the fresh grape equivalent of the quantity (if any) of prescribed goods other than fresh grapes, used in the manufacture of wine at those premises during that year, or either of the immediately preceding 2 years ... amounts, or amounted, to not less than 5 tonnes". (Clause 5)
Definition of "Manufacture of Wine"
Prescribed goods are taken to have been used in the manufacture of wine if they are subject to any "winemaking process", whether or not that process or any other wine-making process is completed in respect of those prescribed goods (Clause 2)
A "winemaking process" is defined as: a process that is a step in the manufacture of wine (including wine used, or intended for use, in the manufacture of brandy); and a process that is a step in the production of grape spirit suitable for the fortifying of wine or the manufacture of brandy; and the addition of single strength grape juice or concentrated grape juice to wine. It does not include: the extraction of juice from grapes; or
the concentration of grape juice." (Clause 1).
Any word not defined in the Act but defined in the Primary Industries Levies and Charges collection Act 1991 has the same meaning in the Act as in the Primary Industries Levies and Charges Collection Act 1991 (Section 4(6))
Definition of "Producer"
The Primary Industries Levies and Charges Collection Act 1991 defines a producer as being "in respect of fresh grapes, dried grapes or grape juice on which wine grapes levy is imposed – the person who is the owner of the product when the winemaking process (as defined by clause 1 of Schedule 26 of the Primary Industries (Excise) Levies Act 1999 begins in relation to the product"(Section 4(1)).
Grape Research Levy
Grape producers contribute to the Grape and Wine Research and Development Corporation by means of a levy on fresh and dried grapes and grape juice delivered to an establishment for processing, including the manufacture of a beverage or other product, canning or extraction of juice. Wineries which grow their own grapes are required to pay a levy.
The levy is not payable on grapes and juice delivered to an establishment which processes less than 20 tonnes (fresh grape equivalent) in a year.
Wine Export Charge
Overview
Schedule 13 of the Primary Industries (Customs) Charges Act 1999 imposes a levy on all exported Australian wines. The levy is payable by licensed wine exporters and is based on the FOB value of the wine exported. A licensed exporter who believes the total amount of levy payable is likely to be less than $200 for the year may apply to the Levies Revenue Service for exemption from lodging quarterly returns, and lodge an annual return instead.
Licensed exporters must lodge a quarterly return with the LRS. Return of Wine Exported forms are available from the LRS. At the end of each quarter, the AWBC will provide each exporter with a Statement of Exports, compiled from the Corporation's database, detailing the export permits issued to the exporter for the quarter. The statement is issued to assist wine exporters, but the onus is on them to declare the correct information.