Rebekha Sharkie (Mayo, Centre Alliance) | Link to this | Hansard source

I move:

That this House:

(1) recognises that:

(a) the Australian grape and wine sector is a major contributor to Australia's economy and to rural and regional communities;

(b) the wine industry contributes $51.3 billion to the Australian economy, providing more than 203,390 direct and indirect full and part-time jobs;

(c) Australia has 65 wine regions with more than 2,000 winemakers and more than 5,000 wine grape growers; and

(d) wine production is critical in many regional communities, supporting supply-chain businesses, tourism, hospitality and exports;

(2) acknowledges that:

(a) the wine industry is in structural distress;

(b) in 2024-25 production exceeded sales by 52 million litres;

(c) this imbalance is not temporary due to reductions in both domestic and global wine consumption, with the International Organisation of Wine confirming that global wine consumption has fallen to its lowest level since 1961;

(d) the global wine market is forecast to shrink by 8 per cent over the next five years, a decline equivalent to 1.5 billion litres of lost consumption, or more than four times Australia's annual production; and

(e) the global crisis is having local human consequences, for growers, winemakers, families and communities; and

(3) calls on the Government to:

(a) support Australian Grape and Wine Incorporated in its $139.25 million proposal over three years to rationalise supply and restore viability of the industry;

(b) support a Wine Business Viability and Transition program to ensure orderly supply adjustment, reduce structural oversupply, and assist growers and winemakers who wish to transition from the sector to do so with dignity; and

(c) focus on growing demand and rebuilding markets.

The wine industry is facing one of the most significant challenges in its history, and the people at the heart of the sector deserve to know that this government is listening. The Australian grape and wine sector provides more than $51 billion to our economy and supports more than 203,000 jobs. It's an industry that sustains regional communities, drives tourism, supports exports and showcases Australia to the world. Our wine regions have contributed enormously to Australia and now there is a genuine partnership with government to help secure that future—it's absolutely desperately needed.

Right now, the industry is in structural distress. Global wine consumption has fallen to its lowest level since 1961, and Australian production exceeds sales by 52 million litres in the last financial year. Forecasts suggest that the global wine market will shrink by a further eight per cent over the next five years. These figures tell a story, and behind that story are people, families and communities. This is playing out in wine regions across the country and is particularly evident in my home state of South Australia, where 80 per cent of Australia's premium wine and 50 per cent of all of its bottled wine is produced. South Australia is the 'wine state' and a proud member of the prestigious group of the Great Wine Capitals Global Network.

In my electorate of Mayo, the wine industry is part of our very fabric. We are home to some of Australia's most recognised wine regions, including the Adelaide Hills, McLaren Vale, Langhorne Creek and Currency Creek. Together, these regions account for almost 30 per cent of South Australia's grape production and support more than 1,300 grape growers. I've spoken with some of those growers who are questioning whether they can continue. It's not viable to keep growing unsold grapes, but it's also too costly to pull out vines and to diversify.

Just last week, I was in McLaren Vale, and it was heartbreaking to see unpicked vineyards scattered right across the district. I've spoken to winemakers, cellar door operators and hospitality businesses. They are all facing increasing financial pressure and uncertainty about the future. I've heard from families who've devoted generations to the industry and are now unsure whether they have a viable business to pass on to their children. The tourism industry is feeling the fallout in regions where wine tourism is critical to economic survival. There are flow-on effects to bottling plants, to agricultural supplies, to freight companies, to printers, to carton manufacturers and to all those secondary industries reliant on a successful wine sector.

The pressure is relentless. It's not just financial; it's emotional. It's affecting mental health, family relationships and entire communities. It's often invisible to those outside of the industry but it's being felt right across kitchen tables, inside family businesses and across regions.

What is frustrating is that the government seems to be turning a blind eye to this. The Australian grape and wine industry put forward a budget proposal designed to allow orderly transition, reduce oversupply and support growers and winemakers through change, but the industry's calls for assistance have gone unanswered. The budget not only failed to help the wine industry; it actually cut funding, phasing out the Wine Tourism and Cellar Door Grants program at a time when it's most needed and not reinvesting that funding into anything else within the sector. The reality is that this devastating change to the wine industry is happening whether the government acts or not. The cost of doing nothing will not disappear; it will simply be borne by growers, families, communities and, ultimately, taxpayers.

This motion recognises both the economic significance of our wine industry and the human consequences of its current challenges. We owe it to families, workers and communities who have built this industry to ensure they are not left facing the challenge alone. This is an incredibly important industry to my electorate. It provides an enormous variety of employment and I urge the government to support it.

A division having been called in the House of Representatives

Sitting suspended from 12:16 to 12 : 29

Andrew Wilkie (Clark, Independent) | Link to this | Hansard source

Is the motion seconded?

Andrew Gee (Calare, Independent) | Link to this | Hansard source

I second the motion and reserve my right to speak.

Andrew Wilkie (Clark, Independent) | Link to this | Hansard source

I understand the member for Pearce would like to present a copy of her speech for incorporation into Hansard, in accordance with the resolution agreed to on 6 November 2025.

Tracey Roberts (Pearce, Australian Labor Party) | Link to this | Hansard source

The incorporated speech read as follows

I would like to speak on the importance of Australia's grape and wine sector and the urgent need to support its future. This is an industry that is not only iconic but foundational to our rural and regional communities. It contributes more than $51 billion to the economy and supports over 203,000 jobs, many in areas with limited alternative employment. These figures represent families, livelihoods, small businesses and communities built over generations, where the success of one vineyard often supports an entire local economy.

Australia is home to 65 wine regions, more than 2,000 winemakers and over 5,000 grapegrowers. From the Swan Valley to Margaret River, these regions are central to local identity. In my electorate, wineries such as Paul Conti Wines are not just businesses but community institutions supporting tourism, creating jobs, mentoring local workers, and showcasing Australian produce to the world. The sector underpins a broader ecosystem. Hospitality, tourism, freight and exports all rely on its success. When the sector performs well, it drives regional growth. When it struggles, the impacts ripple across entire communities, and, right now, the industry is under sustained pressure.

In 2024-25, production exceeded sales by 52 million litres, reflecting a deeper structural imbalance. Global consumption has fallen to its lowest level since 1961, and the market is forecast to shrink by a further eight per cent over the next five years—equivalent to a loss of around 1.5 billion litres. Behind these figures are real consequences such as unsold crops, difficult business decisions, tightening margins and growing uncertainty for regional communities. These challenges are not cyclical; they require a coordinated and forward-looking response.

That is why targeted support is essential. The Albanese government has delivered more than $90 million in support for the sector. We extended the Wine Tourism and Cellar Door Grant program, with $30 million over three years to help regional businesses attract visitors and grow local economies. From 1 July 2026, the WET rebate cap will increase to $400,000, providing eligible producers with up to $50,000 in additional support each year to strengthen cashflow and invest in adaptation.

We are also supporting export diversification through Austrade's $50 million Accessing New Markets Initiative, ensuring Australian wine continues to reach new and emerging markets. In addition, we have backed the development of a national vineyard register, progressed a mandatory code of conduct for grape purchases to ensure fairer dealings, partnered with the South Australian government on the SA Wine Recovery Program and funded the Grape and Wine Sector Long-term Viability Support Package.

I acknowledge the work of Australian Grape and Wine Incorporated and their $139.25 million proposal to address structural challenges. It is a practical and strategic plan that deserves serious consideration. A wine business viability and transition program will also be critical, ensuring that those who choose to remain in the industry are supported to adapt and those who choose to exit can do so with dignity, certainty and a pathway forward. At the same time, rebuilding demand remains essential, through stronger export markets, diversification and the reinforcing of Australia's global reputation for quality and innovation.

More broadly, the Albanese Labor government has invested over $1 billion in rural support and drought resilience, helping farmers prepare for and respond to changing conditions. We are also strengthening the Rural Financial Counselling Service, ensuring farmers and small businesses facing hardship can access free, independent advice when they need it most.

With the right policy settings, targeted investment and ongoing collaboration between government and industry, we can support the grape and wine sector through transition and position it for a stronger, more sustainable future. This is about backing regional Australia. It is about supporting an industry that has shaped our national identity. And it is about ensuring communities—like those in my electorate—continue to thrive for generations to come.

Andrew Gee (Calare, Independent) | Link to this | Hansard source

I'm very pleased to support this motion, because the wine industry has a long and proud history in the Central West of New South Wales. It's part of the fabric of our communities. In places like Orange, Mudgee, Molong, Bathurst, Cargo and Canowindra, wine isn't just a product; it's part of who we are—the identity of our region. It's jobs, small businesses and tourism. It's a great source of pride for our region, and it's a vital part of our region.

Our wines are exported all over the world. Across Calare, there are thousands of hectares under vine, more than 200 wineries and close to 100 cellar doors. From growers in the vineyard to cellar-door staff and everyone in between, hundreds of locals and businesses depend on this industry. In 2024-25 alone, it contributed to the overall gross production of wine in New South Wales, which was valued at $209 million. So it's a very important part of our region.

But, beyond the numbers, it's an industry that is under threat and under real pressure. The wine sector is facing structural challenges. In the past year, production outstripped sales by 52 million litres. That's not a temporary aberration; it's a sign that demand has shifted. Globally, wine consumption has dropped to its lowest level in decades, and, over the next five years, the market is expected to shrink by around eight per cent. That's the equivalent of 1.5 billion litres. These are not just statistics. They translate to real impacts for growers, winemakers, businesses, families and their employees across communities like ours. As I drive around our region, I can see the wineries and the vines being taken out literally before our eyes. They're being removed from paddocks. It is a very concerning situation, and this is why we need to get support for our wineries and get a program in place which deals with this issue.

To give you an example of some of the great things that are happening in our region, at the 2025 NSW Wine Awards Printhie Wines won the trophy for the best sparkling wine, for their 2016 vintage. There were a number of other winners as well. For example, Tamburlaine took out the award for best organic wine, and they were actually very successful in a number of categories. Gooree Park, near Mudgee, won the trophy for best pinot noir. Tamburlaine also won trophies for the best cab sav and the best other red wine varietal.

Right across the region, there are great innovators and great winemakers. At the 2025 Orange Wine Show, Printhie Wines again took out the award for best wine of the show, with their 2016 vintage sparkling. Over at Mudgee Wine Show, Robert Stein won the Champion Wine of Show award, with their 2019 dry riesling. You can see the great things that are happening across our region in terms of winemaking. But this is a major challenge for our region, and we need support.

Another challenge that our industry is facing is the closure of the Great Western Highway. A bridge built by a convict chain gang in 1832 has unsurprisingly failed, and this has meant that tourism numbers across the region have drastically decreased. Even though there are diversion roads in place, the number of tourists coming from the Sydney area and beyond has dropped dramatically, and this is having a major impact on cellar doors and tourism, and it is a major crisis facing our whole region. We have this issue with our wine industry, which is being made a lot worse by what's happening with government inaction, both state and federal, on the Great Western Highway. I would urge the state government and the federal government to show some leadership on this issue. The Premier of New South Wales needs to come out to our part of the world and see the impact that this highway closure is having on our businesses, and we need government support to sort out our wine industry as well.

Claire Clutterham (Sturt, Australian Labor Party) | Link to this | Hansard source

I'm pleased to have the opportunity to speak on this motion today, and I share the member for Mayo's sentiments about how important the wine industry is to the Australian economy and to remote and regional Australia in particular. In recognition of this importance, the Albanese Labor government will always provide strong support for the grape and wine sector.

An example of this is the Wine Tourism and Cellar Door Grant program, with a $30 million commitment over three years designed to allow wine and cider producers to apply for grants of up to $100,000, through Wine Australia, on their eligible rebatable cellar door sales. Round 8 of this program is anticipated to open in August 2026. In round 7, $3.8 million of this was delivered to businesses in South Australia.

One beneficiary in round 7 was Amadio Wines. The Amadio vineyard is located north of the Adelaide Hills wine region, between the areas of Kersbrook and Williamstown, and, on its 320 acres, it grows a huge variety of grapes, including our favourites: sav blanc, fiano, chardonnay, pinot grigio, shiraz and sangiovese. Amadio also has a cellar door at Felixstow, in my electorate of Sturt, and I went for a visit last Thursday, where I met winemaker Danniel Amadio. The Wine Tourism and Cellar Door Grant program has allowed Amadio Wines to invest in a customised tasting offering, to invest in their website to allow them a bigger online push into the domestic and international market, and to invest in more sophisticated point-of-sale equipment for cellar-door sales. I helped test the cellar-door sales equipment and can confirm I was easily able to buy some beautiful Australian made prosecco—yes, we can still call it that—and a gorgeous nebbiolo rose, which I can confirm is no longer with us!

In Sturt, we are also lucky to be home to Penfolds wines Magill Estate Cellar Door, which also benefited from the grant program and is the spiritual home of Penfolds wines. Located 8½ kays from the CBD, Magill estate is an escape—a sanctuary with beautiful grounds, beautiful food and, even better, beautiful Australian wines. I love going there and, more importantly, I love supporting the South Australian wine industry.

South Australia is being supported because of the solid partnership between federal and state Labor governments. Together, Labor is supporting South Australian grapegrowers and winemakers to diversify sales and boost their long-term productivity and sustainability, with the SA Wine Recovery Program having been extended through to 2027. This program is backed by $3.1 million in federal funding, and the extended program is designed to support South Australia's wine industry to recover from the adverse events and market disruptions that have been experienced in recent years. This includes supporting a third round of the resting vineyard rebate, supporting growers to temporarily rest parts of their vineyard to cut production costs and buy some time to evaluate and make decisions on the future viability of vineyards. This builds on the existing streams of the program that will be extended, which focus on improving vineyard waste management, working on domestic market demand-building initiatives and boosting regional grape and wine capability.

In South Australia, we produce 80 per cent of Australia's premium wine and 50 per cent of all bottled wine, with more than 397 million litres of wine exported overseas in the 2024-2025 financial year, worth $1.8 billion. This makes the SA Wine Recovery Program, developed following recommendations made by the Viticulture and Wine Sector Working Group established by agriculture ministers, with further input from the South Australian Wine Industry Association and Wine Grape Council of South Australia, absolutely critical. Our wine industry is not just worth supporting. It is absolutely critical that we support it, and not only so it grows and thrives domestically but so that it can continue to form an important part of our international trade with both established and emerging markets.

Government must continue to play a leading role in this, but consumers can too by buying our beautiful Australian wines. Not only are they excellent but, when you buy Australian wines, you are supporting the Australian wine industry, Australian jobs and Australian businesses, which are worth backing every day of the week.

Ben Small (Forrest, Liberal Party, Shadow Assistant Minister for Electoral Matters) | Link to this | Hansard source

I will put the wines of Margaret River up against any from around Australia in terms of their quality. In fact, perhaps the only thing better than a summer's afternoon with a crisp glass of Margaret River chardonnay is being curled up by the fire with a glass of Margaret River cabernet sauvignon, as I was just this last weekend. But the grape and wine sector across Australia is in for the fight of its life, and it is indeed high time for the Albanese Labor government to step up, put its money where its mouth is and support our viticultural industry.

My electorate of Forrest ranks as one of the finest wine regions of the world, attracting large tourism numbers to the region every year, not to mention a swag of medals at every international wine show. But it is clear, from speaking to the families and producers on the ground, that times really are tough for this industry. Just last November, Tate Wine collapsed into receivership, and by December its creditors had voted to wind it up. The Tate name in Western Australian winemaking goes back more than 50 years, some half a century, to when their father helped plant vines in Wilyabrup, at the heart of the Margaret River winegrowing region. That family's history in wine is now gone. The receiver himself said it plainly: 'The Australian wine industry is struggling from the structural impacts of oversupply.'

So how has the government responded to an industry which is clearly under pressure? In May's budget it axed, at the worst possible moment, the Wine Tourism and Cellar Door Grants program, the only federal program directly supporting cellar doors and jobs in the wine industry.

In September last year my office was notified that Brookland Valley and Houghton Cellar Door on Caves Road, also in Margaret River, would be closing, with the loss of four local employees accordingly. This just underscores why it is the worst possible time for the government to be cutting support to this industry.

But the scale of this problem isn't just limited to a bad patch. These are structural issues across the country and, to some extent, across the globe. Last year, production outran sales by some 52 million litres. Global consumption of wine is at its lowest since 1961, and the market is tipped to shrink another eight per cent, or some 1.5 billion litres globally, which is, to put it in some context, four times everything that Australia produces in a year. Our producers are lucky to some degree, in that they typically produce premium wine, which has suffered less perhaps than other markets.

But Tate Wine is not alone. Just last week, a video was doing the rounds on the internet of an excavator tearing down grapevines at De Bortoli Wines, something of a household name even in my part of the world. Darren De Bortoli spoke frankly about the decision and said, 'That's the cruelty of it. The old vines produce the best fruit, but they're shiraz, and at the moment shiraz can't find a market.' He's not alone. We've got the 166-year-old family winery Tahbilk, which has been burning vineyards planted in the 1990s—vines its winemaker said were producing very good wine. But that is the simple reality across this industry. This is mortgages, livelihoods and family stories, and the mental health of those families pushed to the brink.

The industry hasn't asked for a blank cheque, though. Australian Grape & Wine has a three-year plan that would cost, in total, $139 million—some $60 million to help growers transition or exit with dignity, $40 million to rebuild export markets, $20 million for wine and regional tourism and $15 million for the mental health of growers in crisis. This is a very modest ask as far as transitional support goes in the agricultural sector or, indeed, any other part of the economy undergoing such challenges.

In the south-west and all over Australia, our growers and winemakers may well be the best in the world. But they're facing worsening conditions, and they need a government that is willing to give them a helping hand. Instead, they've received a slap in the face from a government who has callously cut the only federal grant program that was helping jobs in the wine industry. The government simply can't ignore Australians who have put their hand up and are having a go to produce supply and give back locally. It's time we got behind our wine industry and did the right thing not only in restoring the program that was cut in this year's budget but by delivering on the very modest ask of this industry crying for help.

Meryl Swanson (Paterson, Australian Labor Party) | Link to this | Hansard source

The Hunter Valley is one of Australia's great wine regions. For many people in my community, wine is more than an industry; it is a way of life. For generations, families have built vineyards, wineries and businesses that have helped shape the identity of our region. The Hunter's wine industry is not just about what ends up in a bottle or a glass; it is about the growers who lovingly tend their vines, the winemakers who turn the grapes into world-class products, the cellar door staff who welcome visitors and sell that wine, and the countless local businesses that rely on a thriving sector.

As co-chair of Parliamentary Friends of Viticulture, I have had the opportunity to meet with grapegrowers and winemakers from across the country. While every wine region is unique, the message I am hearing is remarkably consistent: this is an industry under pressure. I acknowledge Lee McLean and Australian Grape and Wine, who do a terrific job as one of the peak bodies advocating for grape and wine across Australia.

The Albanese government recognises the importance of the grape and wine sector, and we have been demonstrating support since coming to office. We've delivered more than $90 million in targeted support for the industry. Last year we extended the Wine Tourism and Cellar Door Grant program with a $30 million commitment over three years. That support is helping regional businesses attract more visitors, strengthen tourism offerings and create local jobs. We recognise there is more to do. Importantly, we recognise that wine is not simply an agricultural product; it's a major driver of tourism and regional economic development, and, as my tourism providers tell me, it is an experience we want people to have—an authentic Australian experience that so many people who visit our nation are craving.

Under the tax system, from 1 July this year the wine equalisation tax rebate cap will increase from $350,000 to $400,000. That change will provide eligible producers with an additional $50,000 in support each year, helping businesses improve cash flow, make investments and adapt to changing market conditions. We've also supported export diversification through Austrade's $50 million Accessing New Markets initiative. And we have cobbled back some of the loss we had to China post-COVID, which was very important; I commend the trade minister for doing that.

Australian wine producers know better than anyone that the importance of building and maintaining export markets is crucial, and expanding opportunities in new markets helps strengthen resilience and reduce reliance on any single destination. Alongside these measures, the government has backed the development of the National Vineyard Register, supported the introduction of a mandatory code of conduct for wine grape purchasers, partnered with the South Australian government through the Wine Recovery program and invested in Wine Australia's long-term viability initiatives. These are practical actions designed to support the industry's future.

Getting back to my beautiful local community, I thank all those families who've spent decades—in fact, we are the oldest wine region in the country. I know that there are generations of families—I can think of them, from Petersons to Calais to Savannah; there are three generations of families right there—who are providing a fabulous product. They are people who love wine, they love the people that want to enjoy their product, and I thank them everyday for that. I think of all of those businesses and people who rely on wine for their incomes and their livelihoods. I want them to hear that they have a government who gets it. We do want to support you, and we do want you to continue to produce the great wines that you have.

Andrew Wilkie (Clark, Independent) | Link to this | Hansard source

I thank the member for Paterson for her forbearance. The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.