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'Wine directly supports 60,000 Australian jobs across 64 wine producing regional communities'
Supporting Australian Wine – an industry calling for the status quo in taxation for the sake of jobs and for the sake of regional Australia.
All alcohol is not the same.
Wine is different because of its economic contribution to Australia – more value added, more employment, more exports.
Australian wine creates tourism destinations for Australians and visitors from other countries.
Wine makes a significant contribution to Australian exports.
And wine is different due to its rural regions footprint – employing regional Australians, supporting primary industries and providing the backbone of many regional communities.
A tax forum is proposed for October to examine the recommendations of Australia’s Future Tax System – the Henry Tax Review.
While the Henry Tax Review supported a move to a volumetric tax system for all alcohol sold in Australia, the Rudd Labor Government rejected this recommendation due to the industry suffering from a wine glut and undergoing a significant restructure.
The Australian wine industry continues to endure its toughest period in two decades.
Our industry continues to face significant challenges, including access to water, climate change, imported surplus wine and the unprecedented strength of the Australian dollar. These issues are impacting on the viability of the wine industry at both the grower and producer level.
Imposing a volumetric tax on wine would result in a critical drop in sales coupled with a significant reduction in Australia’s valued vineyard area.
It is for these reasons that the wine industry strongly supports the maintenance of the current tax regime.
A volumetric tax would hurt regional employment, trade and tourism.
It would especially hurt the inland irrigated regions in South Australia, Victoria and New South Wales in the Sunraysia, Riverina and the Riverland.
The wine industry needs certainty in this time of difficulty and the best result for us is for the tax regime to remain the same.
Our industry, our regions and our jobs depend on it.
Wine directly supports 60,000 Australian jobs across 64 wine producing regional communities.
If wine was taxed the same as beer:*
* WFA Henry Tax Review Submission
A volumetric tax will hurt all industry participants and suppliers.