Australian Grape & Wine (AGW) has welcomed a commitment by the Federal Government to extend unfair trading practice protections to small businesses, ensuring a more level playing field for businesses across the wine sector.

In a statement, AGW that said Friday’s announcement builds on the government’s ongoing efforts to address power imbalances between small and large businesses.

“We acknowledge the need for targeted protections that safeguard small businesses from unfair trading practices, including those that impact grapegrowers and wine producers in their dealings with larger commercial entities”.

AGW has actively participated in consultations on these issues and says it supports measures that improve fairness and transparency in commercial dealings.

“Our submission to the Government’s consultation highlighted the importance of addressing market power imbalances and ensuring small businesses can compete on fair and equitable terms,” the statement said.

“This is an important step towards ensuring that small businesses across our sector, including grapegrowers and winemakers, are afforded the protections they need to operate fairly and competitively in the marketplace. We have long advocated for a more level playing field, and this commitment from the Albanese Government is a positive move in the right direction,” said AGW CEO Lee McLean.

“The nuances of the wine sector must be well understood in this process. While we strongly support measures to prevent unfair trading practices, it is crucial that any new framework is tailored to the realities of our industry. We will engage constructively to ensure the final protections strike the right balance between fairness, competition and commercial flexibility,” he said.

AGW’s statement further said that it is “mindful of other ongoing reviews and consultations examining commercial dealings across our sector and [we] will engage constructively in this process to ensure the unique dynamics of the wine industry are fully understood. It is crucial that any new protections are appropriately designed to prevent unintended consequences while effectively addressing the challenges faced by small businesses.

“Treasury’s forthcoming consultation on the design of these protections is a welcome opportunity to ensure the new measures reflect the needs of businesses across the supply chain. Australian Grape & Wine looks forward to working closely with the Government and industry stakeholders to develop a framework that upholds fairness, promotes competition, and fosters a sustainable wine sector,” the statement concluded.

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