Madeleine King (Brand, Australian Labor Party) Share this | Hansard source

I rise to speak today on the Treasury Laws Amendment (2017 Measures No. 4) Bill 2017. I wholeheartedly support the government's initiative in this area, proving that this is one of those instances that show the rest of the country that we as federal parliamentarians can come together and agree on the direction and progression of a range of issues in the parliament, despite our obvious political differences and citizenship difficulties. The general public will be surprised to learn that this occurs far more often than they would believe. I think it's a facet of our political system that requires far more attention that it currently gets, especially in relation to the important work of the joint standing committees across this whole parliament. I would hope giving some more attention to this might combat the adversarial and combative images that portray this place in the short media snippets on the evening news. I may be waiting some time for that, however.

As we all know, many countries around the world, including Australia, are still coming to terms with economic difficulties post the global financial crisis and the subsequent effect on many of their own iconic industries. Australia is no different. While we may differ on our response to the many challenges that this economic reality presents, I'm pleased to be in agreement with the government on this one. I'm sure members opposite can relate to those on this side of the House, that after a long day at this place there is something to be said for relaxing and sitting with colleagues and friends—and sometimes family when they're here—over a glass or two of the best Australia has to offer.

These new challenging economic environments have required action to ensure Australian wine producers, sellers and exporters continue to maintain a competitive edge and operate on a level playing field in this country. This bill deals directly to reform and improve the wine equalisation or WET producer rebate. Structural changes to the legislation will ensure the long-term viability of the Australian wine industry and improve the integrity of the rebate itself, which in its current form is damaging the sustainability of wine production across Australia. In its current form, the WET producer rebate creates an unfair and uneven incentive for businesses to create a structure that maximises rebate claims. This results in excess wine production and indeed an inferior product, which is distributed across the country. We don't want inferior products. It also creates further difficulty for growers in an industry already under significant pressure. The loopholes in the WET and the rebate processes allow bulk wine traders to exploit the market and take advantage of the up to $500,000 rebate, which has sometimes been claimed several times for the same wine. Reforming this rebate will better target the areas for which the policy was initially intended, which is for the benefit of smaller wine producers, who are making significant commitments and investments to the industry around rural and regional Australia.

It must be noted that the WET rebate and the wine equalisation tax itself was an extremely distortionary element of alcohol taxation in Australia. It has been contentious among economists and public health groups, some of which have advocated that the WET rebate should be abolished all together. However, the measures taken in the reform package are to be welcomed by all stakeholders in government and industry and, indeed, they are.

Specifically, the amendments make changes in relation to the WET rebate in its quotation, credit rules and a reduction in the rebate cap from $500,000 to $350,000. It then tightens the associated producers rule and repeals the earlier producer rebate rule. Other measures include the requirement that producers must now own at least 85 per cent of the grapes at the time of crushing and maintain ownership throughout the wine-making process, and that the rebate only applies to packaged wine that is branded in volumes not exceeding five litres.

The industry does have a while to adjust to these new rules in an appropriate time frame up until the first half of 2018. This should provide sufficient time, more than enough time, for the Australian wine industry to make sure they comply with these regulations and can get their head around what will surely benefit a more sustainable wine industry in the future in this country.

As you would know, Mr Deputy Speaker Mitchell, and all my colleagues here would know, and especially the member for Perth, who is in the chamber, Western Australia has a great local wine industry. The tourism hotspots—the Swan Valley and Margaret River—are beacons in the domestic wine industry and are popular for visitors around the state and from overseas. Margaret River is a treasured destination of mine, with an expanse of natural wonders, with caves, forests and amazing beaches. As the member for Kingsford Smith pointed out earlier, there are also great white sharks. I think he was exaggerating about that. There is a wide range of activities for visitors to see and do: surfing, mountain bike trails, hiking. There's the Cape to Cape Track, the various national parks, and of course there are some beautiful vineyards and wines. I invite all of my colleagues in this place across the whole parliament, all their staff, friends and families and all of you who live on the wrong side of the Nullarbor to come and take a look when possible.

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