EXPLANATORY STATEMENT
Issued by Authority of the Parliamentary Secretary for Agriculture, Fisheries and Forestry
Select Legislative Instrument 2013 No. 205
Wine Australia Corporation Act 1980
Wine Australia Corporation (Labelling of Grape Products) Amendment Regulation 2013
Section 46 of the Wine Australia Corporation Act 1980 provides, in part, that the Governor-General may make regulations consistent with the Act to prescribe all matters permitted and required to give effect to the Act, and in particular with respect to requiring the doing of acts or things necessary to be done for the purpose of giving effect to a prescribed wine-trading agreement.
Regulation 6B of the Wine Australia Corporation Regulations 1981 (the Principal Regulations) currently prohibits export of a grape product other than wine, brandy or grape spirit with the name of a variety or varieties of grapes. The restriction was introduced to protect the reputation of Australian wines in overseas markets. However product innovation in the ensuing time has resulted in growing consumer demand for products such as flavoured wines, and Australian producers wish to take advantage of this growing market segment.
The purpose of the regulation was to remove this prohibition. Deletion of the paragraph containing the prohibition allows Australian wine makers to export grape products other than wine, brandy or grape spirit, with varietal claims as part of the description and presentation of the wine product. For example, a grape product made from the shiraz grape with strawberry flavouring can currently only be exported as a “strawberry-infused” beverage. The amendments allow this product to be exported as “strawberry-infused shiraz”.
The Winemakers’ Federation of Australia (WFA) requested removal of regulation 6B on behalf of its industry members. WFA stated that industry has successfully introduced innovative products such as flavoured wine products into the Australian market and these products are gaining favour in many potential export markets. Furthermore they are already legally imported into Australia.
There would be consequential renumbering of paragraph 6B(1)(d) to become paragraph 6B(1)(c).
Amendment of the relevant paragraph in regulation 6B has no impact on the primary legislation - the Wine Australia Corporation Act 1980. There are no other portfolio acts which are affected by this amendment to the Principal Regulations.
Following the request for the amendment from the WFA, the Department of Agriculture, Fisheries and Forestry consulted closely with it by email and discussions. The Department also consulted with the Office of Best Practice Regulation (OBPR) in the Department of Finance and Deregulation in preparing the instrument, to ensure that the amendments meet treaty requirements and are in line with government policy. The OBPR determined that the amendment was of a minor nature, and that no further analysis was required in the form of a Regulation Impact Statement (OBPR Reference Number 14254).
The Regulation is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in the Attachment.
Attachment
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Wine Australia Corporation (Labelling of Grape Products)
Amendment Regulation 2013
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
This Legislative Instrument amends the Wine Australia Corporation Regulations 1981 (the Regulations) to allow the export of grape products other than wine, brandy or grape spirit which are flavoured.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon. Peter Douglas Sidebottom MP
Parliamentary Secretary for Agriculture, Fisheries and Forestry
Overview
The Wine Australia Corporation (Labelling of Grape Products) Amendment Regulation 2013 was enacted to address a gap in the Wine Australia Corporation Regulations 1981 that prohibited the export of grape products other than wine, brandy, or grape spirit with the name of a variety or varieties of grapes. This prohibition was originally introduced to protect the reputation of Australian wines in overseas markets. However, with the evolution of product innovation and growing consumer demand for products such as flavoured wines, Australian producers sought to take advantage of this growing market segment. The regulation was introduced to remove this prohibition, enabling the export of grape products other than wine, brandy or grape spirit with varietal claims as part of the description and presentation of the wine product. The regulation was enacted by the Commonwealth Parliament and aligns with the policy objective of supporting the Australian wine industry's growth and competitiveness in the global market.
Scope and Application
The Wine Australia Corporation (Labelling of Grape Products) Amendment Regulation 2013 applies to the labelling of grape products, specifically allowing the export of flavoured grape products other than wine, brandy or grape spirit with varietal claims as part of the product description and presentation. This amendment responds to requests from the Winemakers’ Federation of Australia on behalf of its industry members, who sought to take advantage of growing consumer demand for innovative products such as flavoured wines in both domestic and international markets. The regulation modifies the Wine Australia Corporation Regulations 1981 by removing the prohibition on exporting these products with varietal claims, which previously restricted such products to being exported as non-specific flavoured beverages. This amendment has no impact on the primary legislation, the Wine Australia Corporation Act 1980, and is confined to the regulatory framework. The regulation is designed to align with government policy and international treaty requirements, as confirmed by the Office of Best Practice Regulation, which determined that no further regulatory impact analysis was necessary. The amendment ensures that Australian wine makers can effectively market their products in overseas markets without the previous constraints on labelling.
Key Provisions
The Wine Australia Corporation (Labelling of Grape Products) Amendment Regulation 2013, issued under Section 46 of the Wine Australia Corporation Act 1980, introduces significant changes to the Wine Australia Corporation Regulations 1981. This amendment specifically targets Regulation 6B, which previously prohibited the export of grape products other than wine, brandy, or grape spirit with the name of a grape variety. The regulation has been modified to allow such exports, thereby enabling products such as flavoured wines to be marketed with varietal claims when exported. For instance, a product made from shiraz grapes with strawberry flavouring can now be exported as "strawberry-infused shiraz" rather than being restricted to a generic description.
The Winemakers’ Federation of Australia (WFA) advocated for these changes, noting that innovative products like flavoured wines are gaining popularity in both domestic and international markets. By removing the prohibition on exporting these products with varietal claims, the amendment seeks to capitalise on this growing market segment. The amendment does not affect the primary legislation—the Wine Australia Corporation Act 1980—or any other related portfolio acts. The Department of Agriculture, Fisheries and Forestry consulted extensively with the WFA and the Office of Best Practice Regulation (OBPR) to ensure that the amendments align with treaty obligations and government policy. The OBPR concluded that the amendment was minor and did not necessitate a Regulation Impact Statement.
In terms of obligations, the amendment imposes specific requirements on Australian wine producers, allowing them to export grape products other than wine, brandy, or grape spirit with varietal claims. These products must comply with the updated regulations, which include the removal of the previous prohibition. Additionally, the amendment ensures that these products can be labelled accurately, reflecting the grape varieties used in their production. The amendment also mandates that any exported grape products must adhere to the standards set forth in the Wine Australia Corporation Act 1980 and its associated regulations.
Failure to comply with the amended regulations could result in legal consequences. Although the specific penalties for non-compliance are not outlined in the explanatory statement, breaches of regulations under the Wine Australia Corporation Act 1980 could potentially lead to civil or criminal penalties, depending on the nature and severity of the breach. Civil penalties might include fines or other monetary sanctions, while criminal penalties could involve imprisonment or other legal repercussions. The exact penalties would be determined by the relevant authorities and would depend on the specific circumstances of each case.