Issue
Is a wholesale liquor merchant's licence issued by the South Australian Government to a wine producer a 'producer's licence' as defined in section 33-1 of the A New Tax System (Wine Equalisation Tax) Act 1999 (WET Act)?
Decision
Yes. A wholesale liquor merchant's licence issued by the South Australian Government to a wine producer is a 'producer's licence' as defined in section 33-1 of the WET Act.
Facts
A holder of a wholesale liquor merchant's licence issued by the Office of the Liquor and Gaming Commissioner South Australia, grows grapes and produces wine from those grapes. Subject to certain conditions, the licence allows the licensee to make retail sales of the wine they have produced. The wine is sold from the licence holder's licensed premises. The licensed premises are premises used by the licence holder for the production of the wine. No other liquor licence is held by the wine producer.
Reasons for Decision
The term 'producer's licence' is defined in section 33-1 of the WET Act to mean a licence issued under a State law or a Territory law to make retail sales of wine from particular premises: • as a wine producer or vigneron; or • in a similar capacity determined in writing by the Commissioner.
In South Australia, producer's licences are issued under the Liquor Licensing Act 1997 . However, a producer's licence only authorises the holder to sell the licensee's own product. Alcoholic beverages that are purchased for resale are not regarded as the licensee's own product. Accordingly, where an entity that produces wine wishes to sell both their own product and alcoholic beverages that they have purchased for resale, they are required to hold another type of licence.
Subject to certain conditions, a wholesale liquor merchant's licence enables the holder to sell (via retail or wholesale) both their own product and products purchased for resale.
The fact that a wholesale liquor merchant's licence provides the holder with powers beyond those specified in the definition of a 'producer's licence' in section 33-1 of the WET Act, does not prevent the licence from being considered a 'producer's licence'. As the wholesale liquor merchant's licence is issued under a State law, and permits the holder to make retail sales of wine from particular premises as a wine producer or vigneron, it is a 'producer's licence' as defined in section 33-1 of the WET Act.