Winemakers seek home version of Aussie tax break

The wine industry wants a home-grown version of an Australian tax rebate scheme which has been extended to New Zealand exports across the Tasman.

Trade Minister Phil Goff said yesterday that the extension of Australia's wine equalisation tax rebate to New Zealand exporters would be worth up to $10 million a year.

The equalisation tax rate is 29 per cent of the wholesale price.

Wine sellers can get a rebate of up to A$500,000.

The extension to cover sales of wine from New Zealand - to conform with CER - was announced this year, and Goff said all technical arrangements were now in place.

NZ Winegrowers chief executive Philip Gregan praised the work the Government had done to get the extension but urged action here too.

"A similar scheme for domestic sales on rebating excise tax would be good for small and medium-sized businesses and good for the development of wine industry tourism."

The excise tax is about $20 a case, and NZ Winegrowers says it hampers profitability.

The organisation believes many small companies are struggling financially.

But Customs Minister Nanaia Mahuta has said there were no plans to change excise duties on wine.

Goff said if the equalisation rebate had not been extended to New Zealand producers, it would have made them less competitive in Australia.

Wine sales to Australia have already grown about 40 per cent in the year to April.

Sauvignon blanc and pinot noir varieties are the best sellers.

Australia takes about a quarter of New Zealand's wine exports, worth about $125 million a year.