Federal Budget 2016: Aussie wine the only winner in tourism industry Budget snub

AUSTRALIA’S wine will be promoted as a reason to travel Down Under in the absence of other tourism industry funding.

A WINDFALL for wine tourism has been coupled with a money-making plan designed to curb excessive grape production and lift the standard of Aussie drops.

In one of the few “wins” for tourism, the Australian Grape and Wine Authority will score $50 million over four years to promote the country’s wine overseas.

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Funding will be available from July 1, “to make the most of new opportunities made available through free trade agreements and build current wine exports”.

At the same time, wine producers will have to meet tougher criteria to qualify for a rebate originally designed to support small winemakers in rural and regional Australia.

From July 2019, wine producers will have to own an interest in a winery and sell packaged, branded wine domestically to get anything back.

Wine tourism — in regions such as the Hunter Valley — is growing in popularity with overseas tourists.

The rebate will also be capped at $350,000 instead of $500,000 from next year, and then be reduced to $290,000 in 2018.

“The wine industry has said the rebate has contributed to excessive wine grape production and low value wine and urgently needs reform,” noted the Budget papers.

“Restricting the rebate to packaged branded wine, will address the wine industry’s concern that bulk and unbranded wine product ... exploits the rebate.”

Wine producers will have to meet tougher criteria to qualify for a rebate originally designed to support small winemakers in rural and regional Australia.

The push to promote “wine tourism” will build on the success of Tourism Australia’s Restaurant Australia campaign that invited the world to dinner Down Under.

Homegrown wines were a big part of the promotion that delivered a 37 per cent increase in winery visits by international tourists last year.

Ironically, Tourism Australia failed to attract more funding in the Federal Budget to the dismay of industry groups.

“We are clearly an industry of significant value to the Australian economy and one the government should be looking to support,” said Australian Tourism Export Council boss Peter Shelley.

Originally published as Federal Budget 2016: Aussie wine the only winner in tourism industry Budget snub