What is the Wine Tourism and Cellar Door Grant?

The Wine Tourism and Cellar Door Grant program has been introduced to support producers who add value by encouraging visitors to wine regions. Wine producers will be able to access an annual grant reflective of their eligible physical cellar door sales.

 

Background

The Wine Tourism and Cellar Door Grant is part of a coordinated suite of measures developed with the Australian wine industry after extensive consultations on reforms to the Wine Equalisation Tax (WET) rebate arrangements. It complements the $50 million Export and Regional Wine Support Package being implemented by Wine Australia from 2016 through to 2021. These complementary measures will align with the reduction in the WET rebate cap in 2018.

 

Objectives

The objective of the Wine Tourism and Cellar Door Grant is to support producers who add value by encouraging visitors to wine regions, and thereby encourage wine tourism.

 

Funding

Wine producers who have met the eligibility criteria in the preceding financial year will be able to access an annual grant of up to $100,000 (GST exclusive) for their eligible rebatable domestic cellar door sales. Total funding under the grant program will be capped at $10 million each financial year.

 

Eligibility

To be eligible for the Wine Tourism and Cellar Door Grant, applicants must:

  • be a wine producer
  • be a legal entity registered for GST with an active ABN
  • have made at least $1,207,000 (GST exclusive) in sales of rebatable* wine the relevant financial year
  • accrue rebatable domestic cellar door sales in excess of any such sales used to meet the $1,207,000 (GST exclusive) threshold in the relevant financial year
  • have paid the WET on all eligible sales used as part of the application
  • have owned or leased a physical cellar door in Australia in the relevant financial year and/or their related entity/ies have owned or leased a physical cellar door in Australia in the relevant financial year, and
  • have a liquor licence valid in the relevant financial year.

If applicants meet the eligibility criteria, they can apply for a grant payment for 29 per cent of the notional wholesale selling price of their rebatable domestic cellar door sales, provided that:

  • such sales are not already used to meet the eligibility threshold of $1,207,000 (GST exclusive) in rebatable wine sales
  • the transaction date for such sales were within the period for which the applicant (and/or their related entity(ies)) has owned or leased the physical cellar door
  • at least 50 per cent of the rebatable domestic cellar door sales used in the grant application consist of sales from the physical cellar door (see examples below)
  • none of their associated producers have already applied for the grant in the relevant financial year.

 

Timing

Applications close 30 September 2020.

 

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