AUSTRALIA: Oz winemakers angered by grape tax plans

By Tony Baker | 13 August 2001

Australian wineries and grape growers are angered by a plan from the Australian Taxation Office to impose the country's 10% goods and services tax on grapes.

Bizarrely, it would raise no extra revenue for the government but cost the producers millions of dollars in compliance and result in cash-flow problems.

As part of a massive tax change introduced on 1 July 2000 the GST replaced existing indirect taxes. Grapes were exempt as a food. Now the ATO wants to change this in the case of grapes supplied to a winery.

Wineries could claim back the tax as an input cost so end prices might not be affected but between harvest and bottling there would be all the tax and administration costs.

Protests are being made to the ATO and Federal Government.

The World Market for Wine 2001
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