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$74 million tax blow to wine industry.



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MEDIA RELEASE

 

David Cox

FEDERAL MEMBER FOR KINGSTON

 

Embargo 12.30am EST 13/4/99

 

 

$74 MILLION TAX BLOW TO WINE INDUSTRY

 

 

Wine consumers face a $74 million tax increase as a result of the Wine Equalisation Tax, the Federal Member for Kingston, David C ox said today.

 

“It is a new tax not an equalisation tax,” Mr Cox said.

 

“If it were an equalisation tax the WET rate would have been set at 24.5% not the Howard Government’s proposed 29%,” Mr Cox said.

 

‘The name is a misrepresentation that wouldn’t be permitted under the Trade Practices Act if the Government was advertising a product,” Mr Cox said.

 

“The tax increase will reduce domestic sales and the Winemakers Federation estimates it will jeopardise 500 jobs in regions like McLaren Vale,” Mr Cox said.

 

“They will be victims of the new tax, the one the Government said wouldn’t make anybody worse off,” Mr Cox said.

 

“Until now the wine Industry had assumed it would be able to negotiate an equalisation rate with the Government but their refusal demonstrates a clear policy to increase the tax burden on wine,” Mr Cox said.

 

“The Labor Party moved amendments to provide a $100,000 exemption from WET for cellar door sales to assist struggling small wineries which are important to the wine tourism industry but even that was rejected by the Government,” Mr Cox said.

 

13 April 1999

 

 

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