Wine Australia Amendment (Label Directory) Bill 2019

Senator VAN (13:15): I rise today to speak in support of this Bill that supports Australia’s wine producers and the integrity of their product.

Australia is the sixth largest wine producer in the world, and the fifth largest wine exporter, with two thirds of Australian wine exported adding 2.89 billion dollars to the economy annually and employing over 170,000 workers in the industry.

In my home state of Victoria there are over 1132 wine producers and over 740 vineyards spread right across the State. You may be familiar with some of these regions – Yarra Valley, Bellarine and Mornington Peninsulas, Rutherglen, Pyrenees, Goulburn Valley and more.

These predominately small and medium businesses employ nearly 13 thousand workers in both direct production and associated industries, such as tourism. They contribute over 7.6 billion dollars to Victoria’s economy.

They supply 19 per cent of Australia’s wine production to a range of producers who export right across the world.

Their hard work in innovation, experimentation and high quality production has seen Victoria develop an enviable reputation as a producer of high quality varietals of all types – some of whom now challenge and beat, the traditional exporters from European and North American countries.

It is this kind of hard work and success that the Morrison Government wants to support.  We have boosted the Export Market Development Grant scheme by 60 million dollars to back small and medium sized Australian exporters – including our wine producers.

We have delivered trade agreements with China, Japan, and Korea. We have signed the Pacific Agreement on Closer Economic Relations and agreements with Indonesia, Peru and Hong Kong.

As a result Australia’s exports have increased to a record 438 billion dollars in 2018, up from 307 billion dollars in financial year 2012 to 13. In 2018, Australia had a trade surplus of over 22 billion dollars – compared to a deficit of 19.9 billion dollars in financial year 2012 to 13.

Our wine industry will also benefit from the new Trans-Pacific Partnership. It is an Agreement between 11 major economies in our region with a total worth of 13.7 trillion dollars.

Through these initiatives we have opened up new opportunities for all of our exporters and we will continue to help them to grow and prosper.

However this Government hasn’t just left support for small business at just that.

Other initiatives such as reducing the tax rate for businesses with a turnover less than 50 million dollars from 30 per cent to 27.5 per cent – the lowest rate in 50 years. This supports some 230 thousand small and medium-sized companies in my home State of Victoria.

For unincorporated businesses with a turnover less than 5 million dollars, we have introduced a tax discount of 8 per cent, capped at 1,000 dollars. We have legislated a further increase to 16 per cent.

We have fast tracked this tax relief, so the full benefit is delivered by financial year 2021 to 22, five years earlier than planned.

The Morrison Government is also helping small and medium businesses invest and grow through the instant asset write-off.

We have expanded the instant asset write-off for small and medium businesses up to a turnover less than 50 million dollars until 30 June this year.

This means those businesses can instantly deduct each and every asset under 30 thousand dollars.

These changes will benefit 3.4 million businesses employing over 7 million Australians, helping them to invest, create more jobs and develop further export opportunities.

Success however, can be impacted by a range of issues. Factors such as drought, bushfires and plant disease can impact on crops and the quality of the product.  Factors such as low wholesale prices, over supply or export controls can impact grower’s profitability. 

That is why the Morrison Government has also announced a range of initiatives to help agriculture producers and small business through the impacts of drought and natural disasters.

These include more than 1 billion dollars of drought loans, worth individually up to 2 million dollars, with no repayments or interest for the first two years. This will make it possible for some agricultural producers to buy fodder, transport stock, build water infrastructure, agist animals, mend fences or refinance existing debt.

A new Small Business Drought Loan up to 500 thousand dollars that will help support regional small businesses impacted by the drought.

Unfortunately, wine producers have experienced various nefarious activities seeking to pass off inferior products through copycat wine and other grape product exports. 

Wine Industry – the industry regulator – has seen products exported from across the country with labels that seek to mimic elements of Australian brands for commercial gain and unfairly benefit from the reputation of those brands.

They are damaging the hard work of reputable wine brands and threatening the continued growth of the wine industry – not only in my home State, but right across Australia.  That is why the regulatory work of Wine Australia is so important.

This continuing success of Australian wine exports depends on the maintenance of our internationally recognised reputation for quality and integrity that is supported by Wine Australia’s regulatory activities.

The Australian wine industry asked for stronger regulatory controls to deter the export of copycat wine from Australia.

The passage of this Bill will enable a Label Directory to be established as part of Wine Australia’s export controls. The directory was proposed by industry as one way of assisting brand owners to protect their intellectual property rights, and by extension the reputation of Australian wine.

It will act as a deterrent to exporters of wine and other grape products who seek to damage Australia’s wine industry and unfairly benefit from the reputation of Australian brands.

The Label Directory will provide brand owners with a searchable database of images of labels that can be used to find labels that potentially infringe their intellectual property rights and enable them to undertake civil action against copycat exporters through the Australian legal system.

The Bill will also enable Wine Australia to use the Label Directory in administering licences to export wine under the Wine Australia Regulations 2018.

One of the great challenges of creating a regulatory regime is that it does not create an undue burden on those who seek to work within the regulations. 

This Government has actively sought to reduce compliance costs for businesses, individuals and community groups and has removed over 6 billion dollars of regulatory burden since 2013.

This includes simplified Business Activity Statements for 2.7 million small businesses, doubling of ASIC financial reporting thresholds reducing the burden on 2,200 companies, a Small Business Superannuation Clearing House and hundreds of other decisions that are making life easier.

To help reduce state government red tape, the Government will pay up to 300 million dollars to states and territories that reduce the regulatory burden on small business – assuming they deliver on the promises they have made.

As part of that effort, can I acknowledge my colleague, Senator Bridget McKenzie, former Minister for Agriculture, for her work on this policy piece.

I also thank the Department of Agriculture, Wine Australia, IP Australia and the Department of Prime Minister and Cabinet for their work on this Bill that is now before us.

I commend the Bill to the Senate.