Australia is a strategic export market for French wine producers. However, its alcohol taxation system is one of the most complex in the world. In 2026, the entry into force of the Australia-European Union Free Trade Agreement (A-EU FTA) has significantly changed the landscape by removing customs duties, but other major taxes remain.
The New Free Trade Agreement (A-EU FTA)
Since March 24, 2026, French exporters have benefited from a major breakthrough: the total removal of customs duties (previously 5%) on still and sparkling wines. This exemption is automatic, provided that a compliant proof of origin is supplied.
Key Takeaway
The agreement also protects Geographical Indications (GIs). Notably, Australia has agreed to stop using the term "Prosecco" for its own production, strengthening the protection of European designations on Australian soil.
The Wine Equalisation Tax (WET): The Fiscal Pillar
Unlike France where taxes are often based on volume (excise), the Australian WET is an ad valorem tax (based on value). It applies at a rate of 29% of the taxable value of the wine.
For imported wine, the taxable value (Value of Taxable Importation) includes:
- The Customs Value of the goods (CVAL)
- International transport costs
- Insurance
- Customs duties (now 0% for the EU)
GST (Goods and Services Tax)
GST is the Australian equivalent of VAT, fixed at a flat rate of 10%. It applies to the sum of the taxable value and the WET amount. It is therefore a tax applied on another tax, increasing the final fiscal impact.
Calculation Example (in AUD)
* In this example, the tax burden represents about 47% of the value of the goods, despite the absence of customs duties.
Labeling and Biosecurity Compliance
Beyond taxation, Australia is extremely rigorous regarding physical compliance:
- FSANZ Standard: The label must mention the number of "Standard Drinks", allergens (sulfites, milk, egg), and pregnancy health warnings.
- Biosecurity: Wood packaging must be ISPM15 treated. Any organic residue on pallets can lead to costly quarantine by the Department of Agriculture, Fisheries and Forestry (DAFF).
Conclusion
Exporting to Australia remains a lucrative opportunity for high-end estates capable of absorbing high ad valorem taxation. At Vastorg, we support you in precisely calculating your landed costs and verifying your labels to avoid any customs blockages in Sydney or Melbourne.