Overview

The Gross Value of Production for the Wine Grapes and Wine Industry for 2015-16 Act 2016, enacted on 27th June 2016, was introduced to provide clarity and certainty to the industry regarding the gross value of production, which is used to determine the amount of levies payable for research and development activities. This Act was enacted by the Australian Government under the delegation authority provided in the Australian Grape and Wine Authority Act 2013. The policy objective is to ensure that the wine industry has the necessary funds for research and development, thereby supporting the growth and sustainability of the industry. This Act identifies the Gross Value of Production for the wine grapes and wine sectors, which is essential for calculating the levies that fund industry-specific research and development initiatives, ultimately aiming to enhance the competitiveness and innovation within the Australian wine industry.

Scope and Application

The Australian Grape and Wine Authority Act 2013 provides the framework for the regulation and development of the wine grape and wine industry in Australia. Under this Act, the Gross Value of Production (GVP) for the industry is determined annually, which is essential for the allocation of funds towards research and development activities. The GVP is a critical metric that encompasses the economic value generated by the production of wine grapes and the subsequent production of wine, which in turn informs the funding requirements for industry-specific research initiatives. For the 2015-16 financial year, the GVP for wine grapes was determined to be $738,878,784, while the GVP for wine was $1,682,214,223. This determination was made by a delegate of the Minister for Agriculture and Water Resources, highlighting the Commonwealth's role in overseeing and supporting the industry. The application of this legislation is specific to the wine grape and wine sectors, ensuring that the economic data is accurately reflected and utilised for industry growth and development purposes.

Key Provisions

The Gross Value of Production (GVP) for the wine grapes and wine industry for the 2015-16 financial year, as determined under section 42 of the Australian Grape and Wine Authority Act 2013, is set forth in the Gazette (C2016G00955). Specifically, the GVP for wine grapes is determined to be $738,878,784 and for wine, it is $1,682,214,223. These figures are the basis for calculating the contributions payable for research and development activities within the industry. The determination is made by Fran Freeman, a delegate of the Minister for Agriculture and Water Resources, in accordance with subsection 32B(2) of the Act. Under this legislation, the wine grape and wine industries are required to adhere to the specified GVP figures for the purposes of funding research and development initiatives. The GVP figures serve as a financial benchmark for allocating funds to support industry-specific research activities aimed at enhancing production, quality, and market competitiveness. By establishing these values, the Act ensures that resources are directed towards areas that will benefit the industry as a whole. The Act imposes several obligations on the wine grape and wine industries. Firstly, it mandates the use of the specified GVP figures for calculating contributions to research and development funds. This ensures that the financial contributions are consistent and based on a transparent and agreed-upon valuation of the industry’s production. Secondly, the industry must comply with the reporting and disclosure requirements set out in the Act, ensuring that the contributions are accurately calculated and paid. This includes maintaining records and providing documentation as required by the Minister or their delegate. Failure to comply with the provisions of the Act may result in civil or criminal consequences. While the specific penalties for non-compliance are not detailed within the text of the Gazette, it is understood that breaches of the Act could potentially lead to fines, legal action, or other penalties as prescribed by law. The maximum penalties for such breaches would depend on the nature and severity of the non-compliance, as outlined in the relevant sections of the Australian Grape and Wine Authority Act 2013. The Act serves to maintain the integrity and effectiveness of the funding mechanism for research and development in the wine industry, ensuring that all stakeholders contribute fairly and in accordance with the law.