Winemakers' Welcome 2017 Federal Budget
There are no major implications for the Australian wine industry in the Budget.
The WET reform initiatives announced by the Government in 2016 are fully funded in the 2017 Budget. Consultation on the Cellar Door Grant guidelines will continue this year and the legislation to implement the WET is expected to be introduced into Parliament mid-year.
The full Budget 2017 papers can be found at http://budget.gov.au/
The key reform initiatives in the Budget include:
- $50 million Export and Regional Wine Support Package allocation split over the next three years from 2017-18, excluding $2 million in 2016-17. Just over $16 million is allocated for 2017-18.
- Cellar Door Grant funding of $10 million per year commencing in 2019-20. (WFA has requested Government consideration of earlier staged payments to occur in 2018-19.)
- Tax revenue from the WET is predicted to increase to $900 million in 2017-18, $1 billion in 2018-19, $1.060 billion in 2019-20 and $1.1 billion in 2020-21.
- Revenue collected by AGWA from the Grape Research Levy and the Wine Grapes Levy in 2017-18 is estimated to be $18.7 million.