Lee McLean, CEO of Australian Grape & Wine

Australian Grape & Wine has welcomed the proposal from the Federal Government to increase the Wine Equalisation Tax (WET) producer rebate to $400,000, and to boost Austrade’s support for wine exporters.

However, Australian Grape & Wine’s chief executive, Lee McLean, cautioned that while these measures would provide some relief to those who are eligible, more targeted action is needed to rebalance supply and demand and drive a sustainable recovery.

“Increasing the WET rebate will help eligible businesses under pressure,” said McLean. “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, Australian Grape & Wine has outlined a suite of measures to help the sector recover by addressing the supply-demand imbalance, including:

• $78 million over three years for an export market stimulus to increase global market presence and reduce oversupply;
• $30 million in sustainability support to prevent vineyard abandonment, mitigate biosecurity threats, and protect long-term land values; and
• $20 million for a domestic marketing campaign to boost food and wine tourism, increase domestic sales, and support regional economies.

“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,” said McLean.

“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.’

Australian Grape & Wine said it urges the Government to prioritise these investments in the 2025 Budget to support the sector to recover, adapt, and grow. Ongoing support for trade, market diversification, sustainability, and regional development will be key to securing a strong future for Australian wine businesses, said the association.

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