Australian Grape & Wine has expressed “deep disappointment” at the Albanese Government’s failure to deliver meaningful support to the sector in the 2025-26 Federal Budget, describing it as a second major missed opportunity in as many years.
“This Budget is another blow for growers and winemakers across Australia,” says AGW chief executive Lee McLean.
“It fails to deliver the targeted programs or strategic investment needed to address the serious challenges facing one of Australia’s most iconic and economically important regional industries.”
WGA had asked for $128 million in funding to help the industry recover in its pre-Budget submission.
Three weeks ago the Federal Government announced pre-Budget that it would increase the Wine Equalisation Tax (WET) producer rebate cap to $400,000 from 1 July 2026.
“We welcome the increase to the WET rebate cap – it will assist some producers with much-needed tax relief in the years ahead,” McLean says.
“But tax relief alone doesn’t address the structural crisis gripping our industry, largely driven by the lingering impacts of trade impediments our producers did not initiate, or deserve.”
The Budget includes $6.8 million for international agricultural engagement and market access, which may benefit some wine exporters.
However, Australian Grape & Wine warns that this falls well short of the coordinated, sector-specific investment required to diversify markets and rebuild export momentum.
“This isn’t the bold action our sector has been calling for – it’s a modest allocation spread across all of agriculture,” Mr McLean says.
“We asked for targeted investment in sustainability programs, export assistance and domestic tourism development.
“None of that has materialised.”
McLean says the reopening of the China market is a welcome development, but not a silver bullet.
The oversupply of red wine alone sits at more than 330 million litres.
“Businesses are selling water rights to put food on the table or pay power bills,” McLean says.
“They’re laying off staff, and many growers haven’t drawn a wage in years.
“The impact on regional economies is profound – and the need for support has never been more urgent.”
McLean says Australian Grape & Wine remains committed to fighting for growers, winemakers and the future of wine communities across the country.
“We’re not giving up,” he says.
“Our industry contributes $45.5 billion to the economy yet has once again been left to wither on the vine.
“It’s time for the Government to step up and show it values the people, regions, and industry that have contributed so much to this country.
“Before it’s too late.”
Recent Comments