More than 50 concerned Hunter Valley wine industry representatives attended a meeting on Wednesday regarding proposed changes to the Wine Equalisation Tax.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The meeting, which was organised by Hunter Valley Wine and Tourism Association (HVWTA), was organised to discuss two main reforms proposed by the federal government in the 2016 budget.
Winemakers currently pay a Wine Equalisation Tax of 29 per cent on the wine they sell, but are eligible to claim a rebate of up to $500,000.
The proposed changes include tightening of eligibility criteria to claim the rebate and reducing the rebate cap from $500,000 to $290,000.
Under tightened eligibility criteria, a wine producer must own or lease a winery.
The eligibility criteria change will exclude potentially 80 Hunter Valley wine businesses that use a contract winemaker from claiming the rebate.
Wombat Crossing Vineyard wine grower and HVWTA committee member Ian Napier gave a presentation on the changes.
Mr Napier said the reduction of the rebate cap will mean larger wine producers in the Hunter Valley will lose a large portion of the rebate.
“That will clearly have to be replaced with cost savings,” he said.
After Mr Napier’s presentation, attendees were offered the chance to air their grievances.
Mr Napier said the meeting helped to explain what was happening and give an opportunity for people to ask questions.
“I think it gave everyone the opportunity to get pretty well on the same page,” he said. “It allowed those who had views to put them.”
Mr Napier will represent HVWTA in consultations with Wine Federation Australia, who are preparing an industry wide response to the reforms.
As the Hunter Valley only produces three per cent of Australia’s wine, he said he was confident they will be listened to but not confident they will be able to change the proposal.
“We’re trying to swing well above our weight,” Mr Napier said.