Winemaking is a growing and expanding industry in Australia. As a consequence, the industry began exporting. The wine industry includes grape growers, producers, and distributors. You can start your own winery with the helpful tips in this guide.
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1. Register your business
Businesses will need to register ATO or ASIC to be viable, but the structure depends on you.
If you choose to be a sole trader you can register an ABN and GST. You should also consider registering a business name. This is not necessary if you trade under you or your partner’s name.
Moreover, you can consider registering a company. This is because companies have an advantage of lower tax liabilities and limited personal liability. You will then need to register a company name.
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2. Protect your intellectual property
The location where you produce your wine can be a great way to market your brand. To help you with this Geographical Indicator (GI) will protect this. GI’s are similar to standard trademarks in that they recognise winemaking regions. You can register your GI through the Geographical Indication (GIC) committee which was established under the Wine Australia Act 2013. Your application will need to meet certain criteria to be approved under the Act.
If you’re unsure of where to start, a Trademark Lawyer can be contacted for further information about how you can lodge your application.
3. Understand What Grants Are Available
Governments can provide industry-related tax grants for wine producers, wine grape growers, and exporters. Wine export grants are available for business development. Your business can get a head start by obtaining a grant. Further, a grant can also be an attractive alternative to raising funds through a business loan or equity finance.
4. Know Your Legal Obligations
Learn your legal obligations that arise from Commonwealth and State Legislation if you decide to become a winemaker. The wine industry is subject to two legislations. These are Wine Australia Act 2013 and Wine Regulations 2018. They incorporate the Label Integrity Program. This program requires statements on wine labels to be genuine.
In order to comply, your information must include:
- The vintage of your wine (it’s age);
- Your wine’s variety; or
- The geographical indication of where your wine was made.
Furthermore, if you export organic and biodynamic wine, then, the Export Control (Organic Produce Certification) applies. This certification is issued under the Export Control Act 1982. However, other import certifications are also required. Further, your certifications need to be checked according to the Export Market Guide to adhere to the countries that are importing your wine.
Food Standards Australia New Zealand also monitors the winemaking process and any wine sold, including imported wine. If you plan on selling or producing wine in either of these countries, then you have to ensure that you are complying with these standards.
The wine industry also collects levies to fund marketing, research, and development for the integrity of plants. These include the grape research levy, wine export charge, and wine grapes levy. The Government can cap these funds by matching it dollar for dollar.
5. Be Aware of the Tax Implications
There are two main taxes that will apply to your winery business. These include the Wine Equalisation Tax (WET) and the Wine Equalisation Tax Rebate.
WET applies when you import or wholesale wine at a rate of 29%. It is payable when you register or have registered for GST. Also, it is paid on the last wholesale of wine between the wholesaler and retailer.
On the other hand, the Rebate scheme provides producers of wine with credit on dealing or an amount of WET paid or on a dealing where buyers did not provide their ABN. To be eligible for a rebate there are different criterion apply depending on the winemaking process.
If you require further information on WET and WET rebates, you can contact a Taxation Lawyer.
Ultimately, if you are up to the challenge of starting your own winery and require further assistance, you may consider contacting a Business Lawyer. Starting a winery can be a great way to enter an industry that’s renowned in Australia. However, you have to make sure that your winery complies with both business and wine-making regulations.
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