Australische Winzer atmen auf – government decides against Henry recommendation
The Australian wine industry took a deep breath at the beginning of this week when the tax review was announced.
At a time of a record wine surpluses, decreased export volumes and values, and the continuing domination of domestic sales by supermarkets, the Australian government decided to not change how wine is taxed and not to remove the rebate for small producers.
Winemakers' Federation Australia
After much hand wringing, gossip, speculation, lobbying and worrying, there was a collective sigh of relief from many family owned wineries across Australia on Sunday afternoon. The Australian Government’s decision to keep the status quo and not support the Henry Tax review recommendations, in regard to wine taxes, was warmly received across the Australian wine industry.
But what was the Henry report recommending in particular for alcohol taxes: Henry recommended a flat rate based on the present beer rate as an index starting point and allowing a 1.15% initial exemption.
The Winemakers’ Federation of Australia (WFA) modelling highlighted that such a scenario would have resulted in:
• 95% of wine increasing in price
• Sales would fall by 34%
• Reduction in vineyard area in Australia of 29,000 hectares
• Job losses of 12,000 including small producers forced out of business due to loss of WET rebate
• Adverse grape grower impact concentrated on the inland irrigated regions in SA, Victoria and NSW
“Most of those jobs would be in regional areas where wineries are crucial contributors to tourism
and thus to economic development,” claimed Mr Strachan WFA’s chief executive. He said support for the existing wine tax system recognised the reality that wine was different from other forms of alcohol in the way it was produced, marketed and consumed.
“Wine is usually drunk in moderation by older adults and most commonly with food,” he said. “It would be ridiculous to make ordinary Australians pay up to four times more to enjoy a glass or two of wine with dinner because we are concerned about binge drinking.
The much mooted Henry Tax Review for Australia, included a reshaping of wine taxes to a volumetric system and the abolition of rebates for small wine producers. If the government had decided to support the recommendations cheaper wines would have seen large price increases for cask and bottled wines and smaller boutique producers losing important rebates which are keeping many wineries afloat in these challenging times across the wine world.
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Die vielen australischen Boutique Winzer können aufatmen. Anfang der Woche verwarf die australische Regierung einen Vorschlag der sog. Henry Kommission, das Steuersystem auf Weine dem der Bierproduzenten anzugleichen.
Kleine, zumeist familiengeführte Winzer geniessen heute in Down Under Vorteile in der Besteuerung, die sog. Wine Equalisation Tax erlaubt Freimengen für produzierte Weine, bevor eine Alkoholsteuer zu greifen beginnt. Ein solches System durch ein volumenorientiertes System (wie heute beim Bier angewendet) zu ersetzen, wie es die Henry Kommission vorgeschlagen hatte, hätte fuer die kleinen Winzer fatale Folgen gehabt. Und das gerade in diesen schwierigen Zeiten von Überproduktion, starkem Australischen Dollar und Verdrängungswettbewerb durch die grösseren Produzenten.
Aus unserer Sicht eine gute Entscheidung der Regierung – zumal der Konsument gerade heute die vielen kleineren Winzer so richtig beginnt zu entdecken.
Michael Brecht
Related posts:
- Good news from the taxman for wineries Down Under
- Is the new budget the end for small wineries in Australia?
- ‘Binge Drinking’ and how the Australian government wants to get rid of it!
- Zu Besuch bei d‘Arenberg in McLaren Vale – South Australian family winery revisited
- There’s nothing like Australia – neue australische Tourismus Kampagne: machen Sie mit
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