The Wine Equalisation Tax (WET) and WET rebate should be reviewed to ensure they are still meeting policy objectives “without unintentionally providing advantages for vertically integrated grape producers, winemakers and wine retailers”.
It is one of the recommendations in an independent report by Dr Craig Emerson on trade and competition dynamics in the grape and wine sector.
The report – Review of Regulatory Options for the Wine and Grape Sector – was released today by Wine Australia.
It examines fair trading, competitive relationships, contracting practices and risk allocation between grapegrowers, winemakers and retailers.
The report also recommends that the voluntary Code of Conduct for Winegrape Purchases should be replaced with a mandatory code.
Dr Emerson engaged in extensive consultation with the sector, meeting with more than 20 different key stakeholder groups including grapegrowers, winemakers, liquor retailers and industry representative organisations across Australia.
The imbalance in bargaining power between large businesses and their small suppliers is a major focus in Dr Emerson’s report, noting that the long-term sustainability of the sector depends on fair conditions for the primary producers responsible for our world class wine.
Dr Emerson’s analysis contains 14 key recommendations which the Government will consider closely, working with industry and stakeholders to establish the best way forward.
Dr Emerson’s analysis forms part of the Albanese Labor Government’s Grape and Wine Sector Long-term Viability Support Package to support the long-term viability of the grape and wine industry.
“The Albanese Labor Government is committed to supporting the profitability, productivity, and resilience of the Australian grape and wine sector,” Agriculture Minister Julie Collins said.
“I would like to thank Dr Emerson for his comprehensive and considered report. This is an important piece of work on an industry all Australians should be very proud of.
“Our Government is committed to ensuring that our grape and wine sector receives the support it needs to flourish and prosper in the years to come.”
Australian Grape & Wine has welcomed the release of Dr Craig Emerson’s review.
Chief executive Lee McLean said the organisation would now take the time to work through the recommendations in detail, in consultation with members and stakeholders across the sector.
“This is a substantial report tackling complex issues, and we acknowledge the significant work undertaken by Dr Emerson and his team,” he said.
“We recognise the need for change and reform in some areas of our sector and will work constructively with the Australian Government as it considers its response.
“It is essential that industry has a strong voice in the next phase to ensure any measures brought forward are fit for purpose, deliver real benefits for both grapegrowers and winemakers, and avoid any unintended consequences.”
Mr McLean noted that the review process had brought forward a wide variety of views from across the industry, reflecting the diversity of business models and regional contexts that make up the Australian grape and wine sector.
“Striking the right balance will be critical,” he said.
“What works in one region or business model may not be appropriate in another, and Dr Emerson has clearly acknowledged that in the consultation process.”
Australian Grape & Wine supports the recommendation to establish a working group to guide the design and implementation of reforms that may be adopted by the government, but industry needs a seat at the table in this process.
“This is an opportunity to create a more transparent, fair and resilient sector,” Mr McLean said.
“With meaningful industry involvement, we can get the settings right for long-term success.”
Recent Comments