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Cardboard wine favoured by government?



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d k ADCA Alcohol and other Drugs Council of Australia

Ψk lc o ix c iCardboard wine favoured by government?The Alcohol and other Drugs Council of Australia (ADCA) and a number of independent wine producers have called on the Federal Cabinet to approve proposed changes to the way taxes are applied to wine products. 1 7 Napier Close,

Deakin, A C T 2600

ΡΟ Box 269, Wod e n , A C T 2606

Phone: (06) 281 0686

Fax: (06) 281 0995

ACN 008 455 525

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The proposed changes have been recommended in the Report from the Industry Commission Inquiry into the Wine Industry. There is widespread concern that the government may ignore the taxation recommendations because of pressure from a few big wine producing companies.

According to Mr David Crosbie, Chief Executive Officer of ADCA,

“The current wine taxes are a joke. Why is it that premium wine producers pay around seven times more tax per litre than cask wine producers? The answer is that most cask wine produced in Australia comes from large manufacturing type companies, who have a lot of money and power, both within the wine industry and politically."

Margaret River wine producer, Mr Bruce Tomlinson agrees that the problem of inequity of wine taxes should be addressed. He pointed out that,

“The cask wine market has grown from 46% of sales in 1981 to 66% today. Given the privileged taxation position afforded cask wine, investment decisions are now distorted towards the export unsustainable lower end of the market. It is time to accept the compromise taxation changes proposed, and give the 750 family run

wineries who do so much for jobs and tourism a fair go."

Mr Crosbie argued that from a health perspective, alcohol is alcohol, whether it is in beer, cask wine or premium wine.

“Alcohol misuse creates major health and social problems within Australia. The fact is that cask wine has been associated with significant alcohol problems. If alcohol beverages are taxed at a higher rate to try and recoup some of the estimated $6 billion of cost related to alcohol misuse in our society, why is cask wine afforded

such an advantageous position?

From a health perspective, the fairest form of taxation is for all alcohol beverages to be taxed according to the volume of alcohol with a percentage of the revenue raised redirected to address the social and economic costs of alcohol misuse."

David Crosbie (06) 281 0686 (BH)

Chief Executive Officer 018 486 630 (AH)

(06) 251 6170 (AH)

Patron-in-Chief: His Excellency The Honourable Bill Hayden AC, Governor-General of the Commonwealth of Australia