Winegrowers drink to rebate

By Dion Teasdale
YARRA Valley winegrowers have welcomed the Federal Government’s decision to increase the Wine Equalisation Tax (WET) rebate scheme.
An expansion of the rebate scheme was included in last week’s 2006-07 Federal Budget and promises to benefit a large number of local wineries.
The WET producer rebate scheme will increase from $290,000 to $500,000 for each producer, or group of producers, this financial year.
Yarra Valley Winegrowers’ Association president, Michael Matthews said the increase to the scheme was a positive step forward.
“We’ve been arguing for some time to get the WET increased and though its not as much as we’ve been asking for it is a step in the right direction,” he said.
Mr Matthews said the expanded rebate scheme would benefit a large per cent of wineries in Yarra Valley region.
“A large number of smaller wineries will now be able to put more back into their businesses and this will help with the viability of smaller wineries,” he said.
McEwen MP Fran Bailey said the main beneficiaries of the WET were small to medium-sized wineries, with each producer to have up to $1.7 million of their wholesale wine sales exempted each year from the WET.
“This rebate was initially secured in 2004 when I took the matter to the Office of the Prime Minister, after working long and hard with local wine makers and the Australian Winemakers’ Federation,” Ms Bailey said. “It is pleasing to see that the changes delivered then are being further extended now.
Ms Bailey said wineries contributed hundreds of thousands of dollars each year to the local economy, underpinning tourism and regional employment.
“This tax relief program gives our smaller wineries exactly what they want – a more competitive and profitable edge in a growing domestic and international marketplace,” she said.