THE wine industry association says a single, fixed rate volumetric tax across all alcoholic beverages being recommended by the federal government's tax inquiry would lead to the loss of 12,000 jobs in the sector.
The Australian Financial Review has learned that the Henry tax report is planning to make wine a priority when it comes to introducing a flat, volumetric tax across all alcoholic beverages.
The wine industry would be the biggest loser, with analysts expecting the government to reap an extra $1.5 billion in excise revenue from wine if it adopted the changes recommended by the Henry report.
Wine is at present taxed on value rather than alcohol content and the government provides rebates for smaller wine producers. Under a flat tax, the price of cheaper wines, particularly cask wines, would rise dramatically.
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