WET rebate round 3: The confusing clarifying press release

Following on from round 1 and round 2 of the developing WET rebate issue, the Assistant Treasurer Kelly O’Dwyer has now released a new press release which somewhat clarifies the controversial earlier media release around the WET rebate eligibility.

The only problem is that this new press release continues to repeat the vague notion (which goes against Treasury’s own Consultative Group recommendations) that WET rebates will only be available to those with a winery!

You can read the new press release here. There are two paragraphs, in particular, that are most relevant, starting with this:

‘The additional tightened eligibility criteria will limit access to the WET Rebate to packaged, branded wine which is for sale to domestic consumers. This will exclude bulk and unbranded wine from the WET Rebate. The new criteria would also restrict access to those with a significant interest in a winery.’

I wrote on Thursday about just how problematic that that last sentence could be, yet it was again repeated. Curious. That said, this new press release also goes on to say:

‘The Government recognises that there are a range of wine production models in the industry, including grape growers who have a real investment in the industry, but may not own equipment for crushing and fermentation’

If that is the case, then why repeat the early statement that the rebate will only apply to those with a ‘significant interest in a winery’? How does that even work? Either this is – again – a poorly worded press release which fails to distinguish between a ‘producer’ and a ‘winery’ as I suggested on Thursday or small producers are indeed going to be hurt by these reforms.

Which is it going to be?

Andrew Graham Avatar

Andrew Graham was once voted the 23rd most trusted wine critic on the planet. A WCA Journalism Young Gun now old hack with 25yrs as a buyer, judge, journalist, marketer and too much more.

3 responses to “WET rebate round 3: The confusing clarifying press release”

  1. Matt Broomhead Avatar
    Matt Broomhead

    Yes- good point Andrew. Seems ill conceived to me. Why did it have to be a “budget issue” and were they racing to get it out and rather than dotting all the i’s and crossing all the t’s?

    Surely this could have been announced in a few more months with a little bit more thought and consideration.

    1. Ah yes but that would rob the government of a chance to show that they’re ‘cracking down on rorts’ while ‘supporting the wine industry internationally’.

      One hand giveth, one hand taketh away…

  2. If you’re interested, Dudley Brown has wrapped up the situation perfectly in a blog post today: This is worth a read for anyone with even a passing interest in Australian wine: https://thewinerules.wordpress.com/2016/06/03/wet-rebates-wfa-and-the-two-way-bet/

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