Barnaby Joyce
May 18, 2017
The Australian wine industry can plan for the future on sure footing following the Federal Government’s Budget announcements of two new grant programs to promote Australian wine at home and abroad.
Deputy Prime Minister Barnaby Joyce and Senator for Victoria, Bridget McKenzie, said the initiatives would deliver important regional, national and international opportunities for Australia’s wine industry.
“Wine is one of the great modern success stories of Australian agriculture,” Mr Joyce said.
“Australian has over 2,400 wineries, which employ around 30,000 people and produce exports of $2.2 billion annually – you can’t argue with numbers like that.
“In addition, the free trade agreements the Coalition has signed in key markets for our wine exports are now delivering opportunities to expand wine exports even further.
“That’s why the Federal Budget 2017/18 delivers the $50 million Export and Regional Wine Support Package: to promote Australian wine in overseas markets and encourage domestic and international tourists to visit our premium wine regions.
“This is money that will help Australian producers improve their existing market share and access new international markets.”
Senator McKenzie said the new $10 million Wine Tourism and Cellar Door grant would complement the Export and Regional Wine Support Package by encouraging visitors to wine regions.
“This government is determined to support wine producers and the vital economic and social contribution they make to local communities,” Senator McKenzie said.
“The Wine Tourism and Cellar Door Grants will provide eligible producers with grants of up to $100,000 for their cellar door sales.
“That’s money that supports local communities, builds local industries and contributes to the ongoing growth of our rural exports.”
Senator McKenzie said the Wine Equalisation Tax (WET) rebate would also be gradually reduced, integrity measures strengthened and eligibility criteria tightened.
“Importantly, industry has told us that the WET rebate drives investment and employment in rural and regional Australia through winemaking and regional tourism.
“To assist this ongoing investment in wine industry, and particularly rural and regional Australia, we are reducing the cap from $500,000 to $350,000 on July 1, 2018 without any further reductions.”
Fast facts
- The Wine Equalisation Tax (WET) rebate will be gradually reduced, integrity measures strengthened and eligibility criteria tightened to ensure benefits go to small and medium-sized producers—who were always the intended recipients.
- The WET rebate cap will be reduced from $500,000 to $350,000 effective from 1 July 2018.
- From July 1, 2018, eligible producers will be required to own at least 85 per cent of the grapes used to make wine throughout the winemaking process
- The rebate will be limited to wine branded with a registered trademark, and in certain cases to wine branded with a common law trademark. The rebate will also be limited to wine packaged in a container not exceeding five litres for domestic retail sale.
