Australian Grape & Wine is calling on the Federal Government to allocate more funding to the wine industry.
The Albanese Government last week announced an increase in the Wine Equalisation Tax (WET) producer rebate to $400,000 and a boost in Austrade support for wine exporters.
However, AGW chief executive Lee McLean says while these measures provide some relief to those who are eligible, more targeted action is needed to rebalance supply and demand and drive a sustainable recovery.
“Increasing the WET rebate will help eligible businesses under pressure,” said Mr McLean.
“However, the ongoing oversupply of red wine continues to have a crippling impact on grape prices, wine prices and the viability of businesses along the supply chain.”
In its Pre-Budget Submission, AGW has outlined a suite of measures to help the sector recover by addressing the supply-demand imbalance, including:
• $78 million over three years for an export market stimulus to increase global market presence and reduce oversupply;
• $30 million in sustainability support to prevent vineyard abandonment, mitigate biosecurity threats, and protect long-term land values; and
• $20 million for a domestic marketing campaign to boost food and wine tourism, increase domestic sales, and support regional economies.
“The Australian Government has an opportunity to deliver bold, industry-led solutions to some of the toughest challenges grapegrowers and winemakers have ever faced,” Mr McLean said.
“By directly supporting sales growth at home and abroad, and providing growers viable pathways to sustainability and profitability, we can drive recovery and secure the sector’s future.
“These measures would complement the Prime Minister’s recent announcements and help reset the industry for long-term success.
“Australian Grape & Wine urges the Government to prioritise these investments in the 2025 Budget to ensure the sector to recover, adapt and grow.
“Ongoing support for trade, market diversification, sustainability and regional development will be key to securing a strong future for Australian wine businesses.”
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