A report following a survey of wineries in the Margaret River region in Western Australia (WA) on the proposed Federal Budget changes to the Wine Equalisation Tax (WET) has revealed that many in the industry have grave concerns. The survey was commissioned by Wines of Western Australia with the analysis of the results performed by RSM. The study surveyed 350 wine businesses in WA.
Broadly, the analysis reveals that the Federal Government's plan to cut the $500,000 WET rebate cap to $290,000 would strip $8 million a year from WA's regional wine communities, with 75 per cent of wineries affected from Margaret River.
Other major findings from the survey of WA producers found that if the WET rebate was reduced:
- 68 per cent felt they would require an unsustainable price increase
- 50 per cent felt they would reduce the number of people they employ
- 24 per cent would require an exit from grape supply agreements