Australian Grape & Wine (AGW) has called on the Government to provide more targeted action to help rebalance supply and demand and to drive a sustainable recovery for the wine sector.
While AGW welcomes the recent announcements to increase the Wine Equalisation Tax (WET) producer rebate to $400,000, and boost Austrade’s support for wine exporters, there are still issues that need to be addressed.
Australian Grape & Wine’s Chief Executive, Lee McLean, said: “Increasing the WET rebate will help eligible businesses under pressure.
“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:
- $78m over three years for an export market stimulus to increase global market presence and reduce oversupply;
- $30m in sustainability support to prevent vineyard abandonment, mitigate biosecurity threats, and protect long-term land values; and
- $20m for a domestic marketing campaign to boost food and wine tourism, increase domestic sales, and support regional economies.
McLean added: “The Australian Government has an opportunity to deliver bold, industry-led solutions to some of the toughest challenges grape growers and winemakers have ever faced.
“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.”
AGW said it is urging the Government to prioritise these investments in the 2025 Budget to ensure the sector to recover, adapt, and grow.
Adding that ongoing support for trade, market diversification, sustainability, and regional development will be key to securing a strong future for Australian wine businesses.