Wine options of Australian tax reform

Paul Kenny, Michael Blissenden, Sylvia Villios

    Research output: Contribution to journalArticle

    Abstract

    Australia's indirect tax policies for wine, the Wine Equalisation Tax (WET) and the WET rebate are very different to the policies of 'old world' wine countries and emerging competitors, and industry leaders have identified these tax policies as stymieing the industry. In light of these concerns and the current tax reform enquiry this paper critiques Australia's wine taxes and evaluates reform options. This paper supports the repeal of the WET. The WET (as well as the wine excise alternative) raise small amounts of tax revenue but damage economic efficiency, fail to target externalities (the wine abusers), appear inequitable and are too complex, particularly for the thousands of small wine producers. Without a WET, it follows that the WET rebate also needs to be repealed, as it is costly, inefficient and inequitable. Assistance would be needed to help those affected by the transition away from a WET.

    Original languageEnglish
    Pages (from-to)22-50
    Number of pages29
    JournaleJournal of Tax Research
    Volume15
    Issue number1
    Publication statusPublished - 2017

    Keywords

    • GST
    • Sales tax
    • Tax policy
    • Wine equalisation tax
    • Wine equalisation tax rebate

    Fingerprint Dive into the research topics of 'Wine options of Australian tax reform'. Together they form a unique fingerprint.

    Cite this