First of all, apologies to my regular readers who have rightly had a moan about my non-posting of late. I have a good excuse – I’ve just got married so have been rather busy opening gifts and looking at photographs, wishing I could do it all over again.
But it’s back to the grindstone now with deadlines aplenty and studying starts apace with June’s MW exams not as far away as I’d like.
And June will come quickly for the CEO of the Winemakers’ Federation of Australia, Stephen Strachan, who will step down from his role after eight years at the helm.
He has overseen the inception of the Wine Restructuring Action Agenda (WRRA), the creation of the Wine Equalisation Tax (WET) rebate, and set up the Future Leaders’ programme during his tenure.
Strachan points to the creation of the WET rebate as one of his proudest during his reign at the Federation. It is designed to aid small Australian producers to claim an annual tax rebate of 29% up to a maximum of AU $500,000.
However it is currently causing controversy. In September, Pernod Ricard-owned Premium Wine Brands and Treasury Wine Estates called for the Australian federal government to reform the Wine Equalisation Tax (WET) rebate, claiming it is sustaining the country’s glut.
Strachan admits, “It does need some reform. The rebate is not intended for bulk wine but growers have been producing surplus grapes and converting it to wine to sell through certain retail outlets at discounted prices. In these cases, the WET rebate is keeping the producers in the market and hitting the pace of reform.”
While Strachan will leave behind an industry “with big issues” he also believes Australia is on its way to building a sustainable wine industry – albeit slowly. It is taking longer than hoped but restructuring of the industry is going on amid a global financial crisis and an Australian currency boom. Their timing was clearly off.
