Sunday, 25 May 2014 00:00

Federal Budget 2014

Then new Federal Government has released their first budget and to the relief of many in the industry they have not increased wine taxes. The Winemakers' Federation of Australia stated that common sense had prevailed in Canberra.

The Federation's Chief Executive, Paul Evans, said there would be a collective sigh of relief across regional Australia.

"The Australian wine industry supports over 30,000 jobs and earns over $1.8 billion in export revenue, but high exchange rates, a consolidated retail sector and a high cost base have all placed significant hurdles in front of producers, Mr Evans said."

"A recent industry review revealed very low average levels of profitability across the wine sector and many cases of local businesses operating at below cost despite the fact we produce a globally competitive product.

"The Federation has set out an action plan to increase profitability led by a step up in global marketing and promotion of Australian wine.

"These measures include stopping New Zealand winemakers from claiming a rebate of up to $500,000 every year for the wine they sell in Australia – this is an opportunity for reform that the Federal Government must not delay further," he said.