Information Sheet

Why is there a levy on Wine Grapes?

Levy is payable on wine grapes to provide funding for marketing and promotion activities conducted by the Wine Australia Corporation (WAC), research and development activities conducted by the Grape and Wine Research and Development Corporation (GWRDC) and plant health activities conducted by Plant Health Australia (PHA).

WAC is a statutory authority of the Australian Government whose specific services for the wine sector include strategic marketing, information and analysis, export and labelling regulation, advice on trade and market access issues, and the identification and protection of the nation's distinctive wine regions. GWRDC is also a statutory authority whose specific services for the wine sector include planning and funding collective research and development (R&D) programs. PHA is a company that coordinates the development of national policy and capability to enhance the ability of Australian agriculture to respond effectively to plant pests, weeds and diseases.

The Levies Revenue Service (LRS) collects the levy and forwards it to WAC, GWRDC and PHA, in addition to Australian Government matching research and development (R&D) contributions. Levies are introduced and administered by the Australian Government at the request of Industry.

What is the levy payable on?

The Wine Grapes Levy is payable on “prescribed goods” used at a winery in Australia in the manufacture of wine.

“Prescribed goods” are defined as:

1. Fresh grapes
2. Dried grapes
3. Grape juice, whether single-strength or concentrated,

being grapes or grape juice produced in Australia.

Who pays the levy and who submits returns?

The Producer, defined as the person who is the owner of the prescribed goods when the wine making process begins at a winery, pays the levy and submits returns to the LRS. Return forms are available from all LRS offices or by visiting the levies website.

Premises are deemed to be a winery if the quantity (if any) of fresh grapes, together with the fresh grape equivalent of the quantity (if any) of prescribed goods other than fresh grapes (e.g. grape juice or dried grapes), used in the manufacture of wine at those premises during:

1. that year, or
   
2. either of the immediately preceding 2 years

amounts, or amounted, to not less than 5 tonnes.

*Note: This means that if premises are deemed to be a winery, all of the prescribed goods used to process wine at those premises are leviable including any amount processed under contract. The owner of the prescribed goods when the wine making process begins is required to pay the levy and submit returns to LRS, regardless of who undertakes the process.

What is the rate of levy on Wine Grapes?

Please refer to the quantities in the table below to determine which base and stepped rate should be used for your levy calculation:

Quantity	Amount of Levy Payable Per Tonne of Fresh Grapes (or equivalent)	Plus	Levy Base Amount
More than 0 to not more than 10 tonnes	$5.00 per tonne	+	$200.00
More than 10 to not more than 3,000 tonnes	$9.20 per tonne (including first 10 tonnes)	+	$180.00
More than 3,000 to not more than 6,000 tonnes	$8.80 for each tonne over 3,000 tonnes	+	$27,780.00
More than 6,000 to not more than 9,000 tonnes	$7.00 for each tonne over 6,000 tonnes	+	$54,180.00
More than 9,000 to not more than 12,000 tonnes	$6.30 for each tonne over 9,000 tonnes	+	$75,180.00
More than 12,000 to not more than 20,000 tonnes	$5.60 for each tonne over 12,000 tonnes	+	$94,080.00
More than 20,000 to not more than 40,000 tonnes	$5.50 for each tonne over 20,000 tonnes	+	$138,880.00
More than 40,000 tonnes	$5.40 for each tonne over 40,000 tonnes	+	$248,880.00

Example 1: Levy on 500 tonnes (500 x $9.20 = $4,600) $4,600 + $180.00= $4,780 total levy payable
Example 2: Levy on 4,000 tonnes (1,000 x $8.80 = $8,800) $8,800 + $27,780.00 = $36,580 total levy payable

The levy is distributed to WAC, GWRDC and PHA as follows; 497.6 cents per tonne is forwarded to GWRDC, 2.4 cents per tonne is forwarded to PHA and the remainder of the levy is forwarded to WAC.

Note: Levy rates are current as at 1 April 2011.

Australian government levies exclude Goods And Services Tax (GST)

Are there any exemptions associated with this levy?

There are certain exemptions associated with this levy in regards to quantities of leviable prescribed goods used. For further information on the specific quantities and to ascertain if you are eligible for an exemption, please contact your nearest LRS office.

When is levy/charge due for payment?

Annual Return:

The return and payment is due on or before 30 September in the following *levy (financial) year. For example a return relating to the 2010/2010 levy year is due by 30 September 2011.

If you will be liable to pay Wine Grape Levy on more than 100 tonnes ($1,100 levy equivalent) in the *levy year payment of this levy may be made in two instalments, the first (half the $ amount of the full return) is to be paid when the return is lodged on or before 30 September and the remainder is due on or before 31 March the following year. Should you prefer, you have the option to pay the full amount in one instalment on or before 30 September following the financial year.

If you will be liable to pay Wine Grape Levy for a *levy year on 100 tonnes or less you are required to pay your full liability to the LRS on or before 30 September in the next *levy (financial) year.

General information and definitions

Basis of levy liability calculation:
Levy for the Wine Australia Corporation (WAC) is based on a stepped rate with different rates applying based on the total of the tonnage processed for/by the producer.

Levy destined for the Grape Research and Development Corporation (GWRDC) is calculated on a dollars per tonne basis. 

Voting - Wine Australia Corporation AGM:
It is in your interest to ensure that returns and payments are received by the LRS by the due date as your eligibility for voting at the Annual General Meeting of the Corporation could be affected.

*A levy year for Wine Grapes is the same as a financial year (i.e. 1st July to 30th June).

What records must be kept, who should keep them & for how long?

People who lodge returns to LRS and people who pay levy/charge to intermediaries are required to keep records supporting the information supplied in returns or information relating to payments made to intermediaries. These records are to be kept for a period of five (5) years and are to be made available to LRS officers.

For further information or clarification on what records must be kept, who should keep them and for how long please contact your nearest LRS office.

Are there any penalties for late payments or other offences?

Where levy/export charge is paid late, penalty will be payable at the rate of 2% per month compounding on the sum of the unpaid amounts, including penalties already accrued, until the outstanding levy/export charge has been paid in full.

Penalties are also imposed for other breaches of the legislation.

For more information please contact your nearest LRS office.

Caution: Giving false or misleading information is a serious offence.

Does GST apply to Australian Government levies/charges?

No. Australian Government levies/charges administered by the LRS are exclusive of the GST (Goods and Services Tax). The levy/charge is a separate calculation, exclusive of GST consideration.

How do I lodge my return?

Our preferred method of lodgement is through our new Levies Online System.

• Lodge Online
• Scan and email a copy of your completed and signed return form to levies management or
• Fax a copy of your completed and signed return form to Free Fax 1800 609 150 or
• Mail your completed and signed return form to:
  
  Levies Revenue Service
  Department of Agriculture, Fisheries and Forestry
  Locked Bag 4488
  KINGSTON ACT 2604

If you would like to receive information and reminder notices electronically in the future please ensure that you have included your business email address on your return form.

Contacts:

Levies Online Helpdesk (for technical assistance only): 1800 022 384

State Offices (for all other assistance):

Adelaide (SA, NT & TAS) 1800 814 961
Brisbane 1800 647 801
Melbourne 1800 683 839
Perth 1800 895 506
Sydney (NSW & ACT) 1800 625 103

How do I make payment?

Our preferred method of payment is Electronic Funds Transfer (EFT). Payments by EFT are secure and assist to reduce processing time and minimise errors.

EFT

Electronic Funds Transfer (preferred method of payment)

Transfer your payment to the following bank account:

Bank Reserve Bank of Australia

BSB 092009

Account Number 111700

Account Name AFFA Official Administered Receipts

Reference Please enter the prefix LRS followed by your LRS Account Number and your business name in the reference/description. (e.g. LRS12345 AZ Wholesale)

Alternatively, you can pay your levies by mailing a cheque or money order (made payable to Levies Revenue Service) along with your return form to the address outlined on the previous page.

What is the Levies Revenue Service?

The LRS is a branch within the Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) and is responsible for the effective administration, collection and disbursement of levies and charges imposed by Commonwealth legislation on a range of rural commodities and products. LRS is also responsible for distributing the Australian Government’s matching funds for research and development, the basis of which is determined by legislation. Funds are disbursed to the relevant Research and Development (R&D) and Marketing bodies, Animal Health Australia, Plant Health Australia and the National Residue Survey.

LRS collects over 70 different levies and charges from a client base of over 9,000 levy payers.

For more information about LRS, please visit Levies website.

What is Wine Australia Corporation (WAC)?

The Wine Australia Corporation (WAC) is the Australian Government authority responsible for the promotion and regulation of Australian wine and brandy, under the provisions of the Wine Australia Corporation Act,  1980.

The functions of the Corporation are:

• To promote and control the export of grape products from Australia;
• To encourage and promote the consumption and sale of grape products both in Australia and overseas;
• To improve the production of grape products in Australia;
• To conduct, arrange for, and assist in, research relating to the marketing of grape products; and
• Such other functions in connection with grape products as are conferred on the Corporation by the Act or the Regulations.

For more information on WAC you can contact them on telephone number 08 8228 2010.

What is Grape and Wine Research and Development Corporation (GWRDC)?

The Grape and Wine Research and Development Corporation (GWRDC) is the Australian Government authority responsible for research and development for the Australian Wine Industry. The GWRDC’s focus is to build on the gains in profitability and sustainability that have been realised through the development and adoption of new sources of information and technology such as improved disease control, irrigation efficiency and canopy management. The GWRDC invests in research in accordance with its five year plan, for more information on the five year plan or GWRDC you can contact them on telephone number 08 8222 9266.

What is Plant Health Australia (PHA)?

Plant Health Australia (PHA) coordinates the development of national policy and capability to enhance the ability of Australian agriculture to respond effectively to plant pests, weeds and diseases. For more information on PHA you can visit the Plant Health Australia website or contact them on telephone number 02 6260 4322.

What legislation is associated with this levy?

The levy is imposed and collected under the following legislation:

• Primary Industries (Excise) Levies Act 1999
• Primary Industries Levies and Charges Collection Act 1991
  and associated legislation

Please be advised that under section 27 of the Primary Industries Levies and Charges Collection Act 1991 (PILCC Act 1991) an authorised person is able to release the names and addresses of levy payers to industry bodies and recipient organisations.

Copies of the legislation may be obtained from the ComLaw website or purchased from Canprint Information Services by phoning 1300 656 863.

This information sheet is a guide only and does not substitute for the relevant legislation.

Who can I contact about levies?

For more information please contact the LRS office in your State. For those in South Australia, the Northern Territory or Tasmania please contact the Adelaide office.

Office	Telephone	Fax
Canberra - Centeral Office	1800 020 619	1800 609 150
Adelaide (SA, NT & TAS)	1800 814 961	08 8201 6099
Brisbane	1800 647 801	07 3716 9177
Melbourne	1800 683 839	03 9322 5500
Perth	1800 895 506	08 9334 1677
Sydney	1800 625 103	02 8334 7135

Email us at DAFF Levies Management.

Visit Levies website.