CHAPTER 1 - INTRODUCTION
Background
1.1
The Tax Laws Amendment (Wine Producer Rebate and Other
Measures) Bill 2004 was introduced into the House of Representatives on 24 June 2004 by Mr
Ross Cameron MP,
Parliamentary Secretary to the Treasurer. The bill was agreed to by the House
of Representatives on 3 August 2004.
Purpose of the bill
1.2
The bill amends the A
New Tax System (Wine Equalisation Tax) Act 1999 (the 'WET' Act) to
implement a new wine producer rebate and to address certain compliance and
administrative issues arising from the legislation.[1]
1.3
In particular, the amendments:
-
introduce a wine producer rebate to off-set wine
equalisation tax up to a maximum amount of $290,000;
-
abolish accelerated depreciation of grapevines.[2]
1.4
The main thrust of the amendments is to reduce the tax
burden for small and medium sized businesses, to reduce incidences of tax
minimisation and to align depreciation rules for grapevines with those
applicable to horticultural plants.[3]
Reference of the bill
1.5
On 4 August
2004, the Senate adopted Selection of Bills Report No.10 of 2004
and referred the provisions of the bill to the Senate Economics Legislation
Committee for inquiry and report by 11
August 2004.
Submissions
1.6
The Committee advertised its inquiry into the bill on
the internet. In addition, the Committee contacted a number of organisations
alerting them to the inquiry. A list of submissions received appears at Appendix 1.
Hearing and evidence
1.7
The Committee held a public hearing in Canberra
on Monday 9 August 2004.
1.8
Witnesses who appeared before the Committee at that
hearing are listed in Appendix 2.
1.9
Copies of the Hansard transcript are tabled for the
information of the Senate. They are also
available through the internet at http://aph.gov.au/hansard.