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The WET: Is it a good drop?
Published on 01 Oct 14 by "THE TAX SPECIALIST" JOURNAL ARTICLE
The wine equalisation tax (WET), introduced by the A New Tax System (Wine Equalisation Tax) Act 1999 (Cth), is, in essence, a wholesale sales tax on certain wine containing a specified content of potable alcohol that is sold for consumption in Australia. The apparent fiscal purpose of the Act is to reduce and recoup the public costs of alcohol abuse. The hallmarks of sound tax legislation are traditionally encapsulated in the tax policy principles of simplicity, equity, economic efficiency and fiscal adequacy.
This article explores the extent to which these hallmarks are reflected in the rules of the Act. The authors conclude that the WET is not a “good tax” in light of any of the principles, and its deficiencies raise the threshold issue of whether alcohol taxation is an appropriate way to address the public costs of alcohol abuse. In the authors’ opinion, there is no valid argument for its retention.
Author profiles
Prof Glenton Barton CTA-Life
Glen is a Professor in the Department of Accounting and Finance in the Business School of the University of Western Australia. He is a Barrister and Solicitor of the Supreme Court of Western Australia and former member in the General and Taxation Division of the Administrative Appeals Tribunal, Perth Registry and Life Member of the Taxation Institute of Australia. - Current at 01 October 2009
Annette Morgan CTA
Annette Morgan is an accomplished academic and professional tax practitioner with over 30 years of experience in taxation. She is the Discipline Lead of Taxation and the Director of the Industry and Community Engagement Hub at Curtin University, where she also founded the nationally recognised Curtin Tax Clinic. Annette is a member of the Australian Taxation Office Tax Practitioners Stewardship Group and serves on several committees within the Tax Institute, contributing to national discussions on tax policy, education, and professional standards. She is also a government appointed member of the WA Legal Cost Committee. Her work spans clinical education, financial literacy, and innovative teaching, and she has received multiple awards for her contributions to the profession and the community. - Current at 07 November 2025Prof Dale Pinto CTA-Life
Dale is currently Professor of Taxation Law in the Curtin Law School as well as being the Chair of the Academic Board at Curtin University. Dale is the author and co-author of numerous books, refereed articles and national and international conference papers and sits on the editorial board of a number of peer-reviewed journals as well as being the Editor-in-Chief of several refereed journals. He is a member of the Board of CPA Australia and is also a Fellow of the Australian Academy of Law as well as being a Chartered Accountant, Chartered Tax Adviser and Honorary Life Member of the Tax Institute. He is also a Life Member of the Australasian Tax Teachers Association and the Australasian Law Teachers Association. Dale has been a registered tax agent for more than 25 years and was appointed by the Assistant Treasurer as one of the inaugural members of the National Tax Practitioners Board. He is a current member of the Board of Taxation’s Special Advisory Panel and the ATO’s Tax Technical Panel as well as the Chamber of Commerce and Industry’s Economic Development Forum in WA. Dale is a member of the Tertiary Education and Quality Standards Agency (TEQSA) Expert Panel in Accounting, Taxation and International Education.
- Current at
13 August 2019
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