The Auswine Forum

If the rumoured WET changes go through with the Federal budget, does this mean a 29% decrease in the wholesale price of all wineries whose production is less than 50 thousand cases a year?

Rather sugggesting that all wines made by other than the top 30-odd (guessing) producers will fall in price?

Will be interesting to see what producers have to say about it in their next mail-outs...?

Very few of 'our favourite wines' on this forum are made by >50,000 case producers, I suspect.

cheers,
Graeme

GraemeG wrote:If the rumoured WET changes go through with the Federal budget, does this mean a 29% decrease in the wholesale price of all wineries whose production is less than 50 thousand cases a year?

Rather sugggesting that all wines made by other than the top 30-odd (guessing) producers will fall in price?

Will be interesting to see what producers have to say about it in their next mail-outs...?

Very few of 'our favourite wines' on this forum are made by >50,000 case producers, I suspect.

cheers,
Graeme

Hi

Without reading any detail yet, I as a retailer, and one specialising in these wines, would sincerely expect and hope so!

Many of these should then be below and around $20 ish per bottle, and great value.

But as they say with both politicians and the ATO, the devil is in the detail!

I would expect most of the wineries to increase their margins and maintain prices. They don't have the economies of scale of the large producers. Seems fair to me.
GW

I think also it is to be only on cellar door sales. Retailers would not like the CDS to reduce their prices as to make the pricing well below their own pricing.

PLus the last news report I saw was 200,000 litres, which is 22,000 odd cases.

Hmm, I was going from the figures in the Fin Review this morning. However, even if it's 200,000 litres, that'll even let copmpanies as large as Grosset & Cullen slip under the radar.

And if, indeed it only applies to 'Cellar Door' sales - I assume that will include mailing-list?

I would certainly expect the wineries to pass a little of that back to their loyal customers. Sure, it would look distinctly odd if they claimed the tax was injurious to their future, then gave all the savings away as soon as it was abolished. Even so, there's some reduced paperwork load to start, and since most of them claimed wine went up when the GST arrived, it would seem consistent to at least make a small reduction in the mail list prices.

cheers,
Graeme

GraemeG wrote:Even so, there's some reduced paperwork load to start, and since most of them claimed wine went up when the GST arrived, it would seem consistent to at least make a small reduction in the mail list prices.

cheers,
Graeme

GST is still being charged, it is just the WET which is being removed in some shape or form. WET was a essentially a replacement for other indirect taxes prior to GST. But it was actually a increaseover the previous methods.
I am waiting to see what happens come Budget time.
Cheers