Following the announcement of the federal budget last night, industry representatives have voiced their dissatisfaction with the allocations for wine, and for agriculture more broadly.

Australian Grape & Wine has expressed deep disappointment in the 2025-26 federal budget, saying the government has failed to deliver “meaningful support” to the grape and wine sector, and describing it as a second major missed opportunity in as many years.

“This budget is another blow for growers and winemakers across Australia,” said chief executive Lee McLean. “It fails to deliver the targeted programs or strategic investment needed to address the serious challenges facing one of Australia’s most iconic and economically important regional industries.”

Australian Grape & Wine acknowledged the government’s pre-budget announcement to increase the Wine Equalisation Tax (WET) producer rebate cap to $400,000 from 1 July 2026, describing it as a welcome measure for some small and medium-sized producers.

“We welcome the increase to the WET rebate cap—it will assist some producers with much-needed tax relief in the years ahead,” said McLean. “But tax relief alone doesn’t address the structural crisis gripping our industry, largely driven by the lingering impacts of trade impediments our producers did not initiate, or deserve.”

The budget includes $6.8 million for international agricultural engagement and market access, which may benefit some wine exporters.  However, Australian Grape & Wine warned that this falls “well short” of the coordinated, sector-specific investment required to diversify markets and rebuild export momentum.

“This isn’t the bold action our sector has been calling for—it’s a modest allocation spread across all of agriculture,” McLean said. “We asked for targeted investment in sustainability programs, export assistance, and domestic tourism development. None of that has materialised.”

“The re-opening of the China market is a welcome development, but it’s not a silver bullet. The oversupply of red wine alone sits at more than 330 million litres. Businesses are selling water rights to put food on the table or pay power bills. They’re laying off staff, and many growers haven’t drawn a wage in years. The impact on regional economies is profound—and the need for support has never been more urgent.”

Australian Grape & Wine reiterated that it remains committed to fighting for growers, winemakers, and the future of wine communities across the country.

“We’re not giving up,” said McLean. “Our industry contributes $45.5 billion to the economy yet has once again been left to wither on the vine.  It’s time for the Government to step up and show it values the people, regions, and industry that have contributed so much to this country. Before it’s too late.”

This sentiment was echoed across the agricultural sector.

National Farmers’ Federation president David Jochinke said the budget was a chance for the Federal Government to back Australian agriculture and give the economy a boost.

“While we acknowledge some new funding targeting the sector—especially the $3.5 million for a National Food Security Strategy, a key election ask—the budget falls well short of the investment needed to unlock agriculture’s full potential,” Jochinke said.

“Farmers are grappling with major geopolitical, environmental and societal shifts. We need a sharper focus from government to ensure we keep farmers farming, and keep food affordable for Aussie families.

The NFF also noted disappointment in the “secrecy” surrounding the Murray-Darling Basin buybacks.

“Yet again, the government hasn’t disclosed what buybacks are costing taxpayers,” said Jochinke. “The government’s buyback program is being conducted behind closed doors, with no regard for the communities impacted nor for adhering to corporate best practice.

“Instead of investing sneaky millions—or billions—into damaging buybacks, we call on the government to redirect the funding into direct measures like eradicating carp or native fish breeding programs.

Victorian Farmers Federation (VFF) also voiced disappointment in the budget, with president Brett Hosking describing it as “underwhelming”.

“While investments into rural childcare facilities and the commitment to develop a National Food Security Strategy is welcome, overall, it’s an underwhelming budget for Victorian farmers,” said Hosking.

“In this election year, we must see major investments into fixing our crumbling rural road network and ensuring there’s adequate resources to manage the renewable energy transition.”

Are you a Daily Wine News subscriber? If not, click here to join our mailing list. It’s free!