THE SOUTHERN
Part of the Farmer Group Rural Newspapers Covering Victoria Published since 1986
APRIL, 2016
PASTURE AND FERTILISER
486 Whitehorse Road, Surrey Hills, 3127
THE SILENT THIEVES OF DAIRY PROFIT
PAGES 8-10
PAGE 16
MACHINERY PAGE 19
Phasing out wine tax will destroy small winemakers
CANCER CRUSADE: Owners of Red Fox Farm Fresh in Thorpdale, Jason and Rachel Carpinteri pictured with daughter Lola, are using a percentage of their potato sales to assist the National Breast Cancer Foundation’s research program. See page 5 for our full story.
THE wine industry is reeling at the recent Senate committee’s recommendations to change the nation’s wine tax system by proposing a phase out of the wine equalisation tax (WET). The Senate’s rural and regional affairs and transport references committee recently released a report in which it argued that the WET rebate, introduced 17 years ago to support regional producers, be phased out over five years. The committee recommended that the savings be put towards “structural adjustment” in the wine business, including what it described as an annual grant to “genuine cellar door operators” to support wine sales. Reactions to the recommendations have not been favourable among local winemakers. Balgownie Estate, which has a cellar door in the Yarra Valley and Bendigo, winemaker Tony Winspear said that any change to the wine tax system would be a “remarkable backward step”.
“Given we have only just had some relief in terms of the Aussie dollar going down, and which is now heading back up again, any increase would be extremely counterproductive,” he said. “We need to keep investing in our wineries to keep up with world demand. “We need to look at new varieties and we are dealing with climate change, so we need to plant heat and drought tolerant varieties. “With all these challenges we already face, any changes to tax will make life very difficult,” Mr Winspear said. Yarra Valley-based Seville Hill Estate winemaker and owner John D’Aloisio said that any idea of phasing out the WET is “ridiculous” and would send all small wineries broke. Continued page 6
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