James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Hansard source

I would like to make a couple of quick comments. I would like to thank the senators for their contributions. In terms of how the WET rebate currently operates, it applies to 29 per cent of the value of the last wholesale sale of the wine. The rebate currently provides producers a rebate of 29 per cent of the wholesale value of the eligible domestic sales of up to half a million dollars per year. The eligibility for the rebate is broad, with the rebate able to be claimed on bulk and unbranded wine. The rebate can be claimed multiple times on the same wine throughout the production chain where it is subject to blending or further manufacturing before being sold.

The current system allows the rebate to be claimed and the WET liability to be deferred through the supply chain to the last wholesale sale. This can result in the rebate being claimed and no corresponding WET paid when the wine is subsequently exported. The tightened eligibility criteria will remove rebate access from bulk and unbranded wine, which contribute to structures that exploit the rebate. It will stop the rebate from being claimed multiple times on the same wine through the production chain where it is subject to blending or further manufacture, and will strengthen the link between the rebate being claimed and the WET being paid. I thank senators for their contributions and I commend the bill to the Senate.

Question agreed to.

Bill read a second time.