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What has changed?
The Australian Government, as represented by the Department of Agriculture and Water Resources (the department) and the Wine Australia have entered into a collection agreement pursuant to section 11 of the Primary Industries Levies Charges and Collections Act 1991 (Collection Act). This agreement provides for Wine Australia to collect the charge that is imposed on Australian produced wine that is exported in accordance with Schedule 13 of the Primary Industries (Customs) Charges Act 1999.
Wine Australia will assume the responsibility of collecting the wine export charge (WEC) for all returns due from 1 July 2015. Licensed wine exporters will no longer be required to submit their returns to the department. However, licensed wine exporters will need to be aware of the new collection arrangements, administered by Wine Australia, for the WEC.
Is there a change in the WEC rate?
No, the rate remains the same where WEC is calculated as a percentage of the free on board (FOB) sales value. The WEC rates are as follows:
| Wine FOB sales value for the levy year | Levy base amount | Plus | Amount of levy payable |
|---|---|---|---|
$0 to $20 million | - | - | 0.20% of value |
$20 million to $70 million | $40 000 | + | 0.10% of value between $20m and $70m |
$70 million and over | $90 000 | + | 0.05% of value over $70m |
For example, if the FOB sales value is $75 000, the wine export charge payable is calculated as:
75 000 x 0.2% = $150.
Rates are current as at 1 July 2015.
Australian Government levies and charges exclude GST.
What is the Wine Export Approval Process?
The Wine Australia Act 2013 gives the Wine Australia regulatory powers that, amongst other things, allows Wine Australia to control the export of grape products from Australia. This includes determining by whom, and under what conditions exports are permitted, in accordance with the Australian Grape and Wine Authority Regulations 1981 (the Regulations).
Section 5 of the Regulations provides that Wine Australia may grant an export licence that is valid for up to three years, to approved applicants. Section 6 of the Regulations provides the general conditions of export that must be met, including that the exporter is a licensee. All wine shipments exceeding 100 litres require export approval by Wine Australia.
As of 1 July 2012, Wine Australia’s wine export approval process includes the following steps:
Licence to export – exporters must be licensed before they can export wine in shipments that exceed 100 litres. To obtain a licence the potential exporter must meet a set of criteria outlined in Regulation 5(3).
Product registration – products must be registered with Wine Australia prior to export. In order to obtain approval a Continuing Approval Application (CAA) for each product must be forwarded to Wine Australia. The application requires a chemical analysis, compositional data of the vintage, variety and geographical indication of the wine, and details of any labels associated with the blend. Registered products are issued a Continuing Approval Number (CAN).
Export permit – exporters must submit a shipping application for each consignment of wine leaving Australia that is in excess of 100 litres. The shipping application notifies Wine Australia of the intention to export and should be lodged 10 days before the date of departure.
What if I have outstanding payments and returns?
The administration of outstanding payments and returns relating to all periods prior to the 1 July 2015 will continue to be managed by the department.
You should lodge your outstanding returns and/or payments to the department as soon as possible.
Are there any penalties for late payments?
If you pay your levy late, you will be penalised at the rate of 2% per month. This will compound on the total of the unpaid amounts, until you have paid the outstanding levy in full.
The department will continue to manage the collection and remittance process for late payment penalties.
How do I remit my late payment penalties?
The best way to pay is by electronic funds transfer (EFT). Your payment will be secure and you will assist the department to reduce its processing time and minimise errors.
Bank: Reserve Bank of Australia
BSB: 092009
Account number: 111700
Account name: AFFA Official Administered Receipts
Reference: enter the prefix ‘LRS’ followed by your Levies account number and your business name—for example, LRS12345 AZ Wholesale.
Cheque/money order
Mail a cheque or money order (made payable to ‘Department of Agriculture and Water Resources - Levies’) along with your return form to:
Department of Agriculture and Water Resources - Levies
Locked Bag 4488
KINGSTON ACT 2604
Where can I get more information?
Wine Export Licence and WEC Collection Process
Please contact Wine Australia for all wine export licensing application and WEC collection enquiries.
Wine Australia (Wine Australia)
Telephone: +61 8 8228 2000
Email:Finance or visit Wine Australia Website
Annual Wine Export Applications, Outstanding Payments and Returns, and Penalties
Please contact the department’s levies Adelaide office for any of the following:
- administration of outstanding payments and returns relating to all periods prior to 1 July 2015
- collection and remittance process for late payment penalties
- applications for exemption from lodging quarterly returns
- all matters regarding levy returns and payments for Grape Research and Wine Grape Levy
Department of Agriculture and Water Resources – Levies Adelaide Office
Telephone: 1800 814 961
Email:Levies Management or visit Levies Website