Are you ready for the Wine Equalisation Tax (WET) changes?
Generally, Wine Equalisation Tax (WET) is payable at a rate of 29% on the wholesale value of wine supplied by taxpayers registered or required to be registered for GST (e.g. wine producers, wine importers or wine sellers).
From 1 July 2018, there are main changes to the way WET operates:
- The producer rebate cap is reduced to $350,000 per year (previously the rebate cap was $500,000 per year) and more conditions must be satisfied by the producer to claim this rebate;
- More strenuous conditions must be satisfied before WET credits can be claimed (in respect of wine sold from 1 January 2018 onwards); and
- More information must be supplied if wine is bought under quote (i.e. sales that are exempt from WET because the purchaser quoted their ABN).
Because these new requirements can be complex and difficult to implement, the ATO will not apply penalties or interest if the new requirements are not followed between 1 July 2018 and 31 December 2018. However, this 6-month amnesty period will not be available for taxpayers who deliberately or recklessly choose not to follow these new requirements.
If you are involved in the wine industry, please contact your Nexia advisor to find out how these WET changes may affect your business. Nexia Australia has a specialised wine industry group that can help you make the necessary changes to your systems and supply chains (where necessary) to ensure your business satisfies the new WET requirements. This group has monthly meetings and targeted discussions on how Nexia can assist clients involved in the wine industry
Red flags for SMSF auditor
In the past, we have warned about using cheap so-called “SMSF audit specialists” to audit a taxpayer’s self-managed superannuation fund.
In particular, there may be some risk involved if a taxpayer uses:
- Auditors who both audit and prepare the financial accounts of the SMSF;
- Low cost auditors; or
- Auditors who are related to any member of the SMSF (e.g. recently an SMSF auditor was disqualified for auditing the SMSF of a family member).
We remind our clients to be vigilant of deals that seem too good to be true. The ATO is alert to these low cost auditors and is making appropriate enquiries.
Preparing incorrect accounts and tax returns may cause the SMSF to become non-compliant – giving rise to the SMSF paying tax at 45% of its income and on the value of its assets in the year of non-compliance. Such a high rate of tax will result in a very significant depletion of the SMSF’s assets – therefore SMSFs must be accurate in their reporting and operations.
Your Nexia Edwards Marshall NT Adviser is always pleased to assist you with any enquiries regarding your SMSF, the pros and cons of having an SMSF and maximising benefits under our tax and superannuation laws.
How can Nexia Edwards Marshall NT help you?
For any questions or to discuss any of the above in relation to your personal situation, please contact Sarah McEachern or your Nexia Edwards Marshall NT Adviser.
The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.