Changing the tax arrangements would put many small operators out of business.
This one is a bit tricky. As part of the compromise that landed the GST on us, small winemakers don’t have to pay the 29% Wine Equalisation Tax that larger producers do.
In effect, this props up businesses that otherwise mightn’t survive. Scrapping the WET rebate would undoubtedly have a devastating effect on some small producers, particularly if they’re not in a position to sell to the premium end of the market.
If the changes make a small operator’s product more affordable, the issue becomes one of quality rather than quantity.
There’s no guarantee that making bulk wine more expensive will lead to better health outcomes.
True. There’s no guarantee. A price rise along with measures in other areas will effectively reduce the amount that some people can afford to drink. Ask someone like Noel Pearson if he thinks that would be a bad thing...
In any case, when those howls of protest kick in, I know which side of the fence I’ll be sitting on.
