Your favourite wineries days could be numbered...

We like to concentrate on the wine here at Winemakers Choice HQ, but sometimes, sadly, politics gets in the way... The excerpt below comes from last Wednesday's WA Today.

"More controversial — but far more lucrative for federal coffers — would be ending the wine equalisation tax rebate for producers, which is forecast to cost $1.13 billion over the next four years. The WET rebate, introduced by the Howard government in 2004 in response to heated criticism of the goods and services tax impact on small to medium wineries, entitles producers to a rebate of 29 per cent of the wholesale value of domestic sales." WA Today, 1st April

It doesn't sound like much (and it is merely a proposal at this stage), but that simple sentence will drive a stake of fear through the hearts of Australia's 2300 (mostly small to medium sized) wineries.

The WET rebate system was first setup as a method of softening the blow of the ridiculous 39% tax regime that is leveraged upon all wine products, allowing the smaller 'Mum and Dad' style family operations a 29% tax rebate (which is calculated on the wholesale cost) up to the value of $500,000.

Again, it could be argued that a tax rebate is simply a nice cheque from the government and that the cost is passed on to the end customer anyway. However, what that ignores is the absolutely perilous state that wineries in this nation are faced with already. Beside the ubiquituous GEC, domestic wine consumption is down 5%, exports down 10% and the market swamped with cheap wines from large producers. Couple this with drought, bushfires (especially in the Yarra valley) and the devastating 2009 heatwave and its not much fun being a wine producer at present.

So what we are suggesting is to spare a thought for the small to medium sized Australian wineries out there & direct more of your drinking dollars their way. Admittedly, we still like a great deal from our large producers, but it is the 'little guys' that are the source of much of the most innovating and unique wines out there that deserve more attention.

In the meantime, we will keep you updated on what happens with the endangered WET rebate as more information comes to hand...

What we've been drinking

Gramps Shiraz 2006: There are few Barossan reds that can match this one for both consistency and flavour. Rich, medium bodied Shiraz that shows no excess of oak or alcohol, just generous, upfront fruit and integrated tannins. Already drinking well. Highly recommended.

Pepper Tree Reserve Coonawarra Cabernet Sauvignon 2003 A forgotten brand in the scheme of things, this now mature Cabernet has tomato leaf cool climate aromatics and a cedary, slightly meaty palate. Drinking near its peak.