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Makers and MPs want wine tax cut
12 Feb 2004
Coalition backbenchers are urging the Australian Government to give small and medium-sized winemakers a tax cut of up to $100 million. The Winemakers Federation of Australia is lobbying the Federal Government to end the 29 per cent wine equalisation tax, which is applied to the first 600,000 litres that wineries sell domestically. The break would effectively exempt about 1,580 of Australia's 1,620 wineries from the tax.
Industry representatives will hold a meeting with MPs in wine-producing seats on March 1. Judi Moylan, whose WA electorate of Pearce includes the Swan Valley, said winemakers should be supported and able to retain a fair share of their profits. She said her backbench colleagues are sympathetic to the concerns of small producers.
Winemakers Federation CEO Stephen Strachan said the profit margin for small and medium wine producers has dropped to just 1 per cent since the wholesale sales tax was replaced by the wine equalisation tax in 2000. The industry claims the tax disadvantages small wineries, as it's calculated on value rather than volume.
Australian Financial Review, 12/2/04.
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