Wine tax overturn praised

TWEED winemaker Mark Quinn has praised the Federal Government for not replacing the existing wine tax as the Henry Tax Review suggested, saying it would have spelled death for the Australian wine industry.

The review, which was released on Sunday, proposed the replacement of Australia’s wine equalisation tax with a “volumetric” system based on alcohol content.

The change would have seen wine prices rise and sales fall with flow-on effects including 29,000 hectares of vineyards becoming redundant and the loss of about 12,000 jobs across Australia.

Mr Quinn has owned Ilnam Estate winery and vineyard since 1998 and welcomed the news that the tax proposal would not be enforced.

“I suppose from a responsible service of alcohol point of view it could be a good thing, but for a winemaker you spend years in the production process of fine wine and you have already paid taxes on it, if the alcohol tax was to go through it would have forced people out of the business,” Mr Quinn said.

The resources sector was hit with a 40 per cent tax on profits and Mr Quinn said he agreed with the decision.

“To tax a great industry like the wine industry is crazy, our business is about growing things and cultivating land that we own,” Mr Quinn said.

“Miners exploit land that they do not own, they have a solid industry and they are not going to lose it. Australia has the lion’s share of resources.

“If they had gone ahead and put a crazy tax on the Australian wine industry it would have killed us.”

Mr Quinn said if people can not get wine from Australian winemakers they would buy from international suppliers.

“At the end of the day nothing is certain in life but death and taxes,” Mr Quinn said.

“Nobody like taxes but we all have to pay them, as long as they are sensible taxes they are necessary.”

Summed up

• Parents will not have to return to work when their youngest child turns four

• Workers earning up to $37,000 will receive a $500 contribution

• The Medicare levy will not be removed

• 30-year-old women who leave work to have children will be $80,000 better off

• The luxury car tax will not be abolished

• Workers aged 50 and over with balances below $500,000 will be able to double superannuation contributions to $50,000