29 May 2018 Newsletter

 

 

FEATURE ARTICLES                                                                                      PDF Version

SAWIA and WGCSA consider how to best serve the wine industry going forward
SAWIA secures $2 million investment in South Australia’s international wine tourism
South Australia's wine tourism to benefit from $6.1 million investment   
New Chain of Responsibility laws – Register now for important regional seminars
Gramp Hardy Smith Memorial Prize

INDUSTRY & GOVERNMENT

Important Update - Labour Hire Licensing scheme  

EMPLOYEE RELATIONS & WORK HEALTH SAFETY

Wine Industry Salary Survey Report available early June
Public use defibrillators – Coming to a cellar door near you
Augusta Zadow award applications now open
Return to work premium – Reduction for wine manufacturing but grape growing lags
Beware the Fair Work Ombudsman  Barossa audit identifies 50% non-compliance    

SALES MARKETING & PROMOTION

Alibaba is coming to Adelaide – South Australian China Export Forum 2018
Solstice. A Midwinter Cellar Door
International Wine Tourism – Important Data Warehouse sessions
Wine exports reach new heights
Wine Australia Exporter Workshop & China / Asia-ready workshops
ThincLab Chalons – Uni of Adelaide’s newest business incubator
Other upcoming events
Trade mission to Israel
Award nominations

 

SUSTAINABILITY

Murray Darling Basin Plan update
SAWIA’s Environmental Excellence Awards for 2018 – Nominate now  
SAWIA makes submission regarding alleged non-compliance with Basin Plan 

OTHER

Federal Budget 2018 - What you need to know
2018 Coonawarra Australian Cabernet Symposium
Other events
Apply now for $30,000 Nuffield Scholarships
Dates for your diary


 

Message from the Chief Executive

SAWIA is delighted with the recent announcement by Senator Ruston (Federal Assistant Minister for Agriculture and Water Resources) that SAWIA has been awarded a $1 million grant for South Australian International Wine Tourism. SAWIA will be working closely with the SA Tourism Commission in project delivery, supported by the Department of Primary Industries and Regions SA through the provision of matching funding. The two-year, $2 million project is expected to start in July 2018.

SAWIA met recently with two key Ministers in the new State Government that have significant impact on the wine industry – Tim Whetstone (Primary Industries and Regional Development) and David Ridgway (Minister for Trade, Tourism and Investment). The initial meetings were constructive, recognising the importance of the wine industry while discussing plans for the future and identifying ways to work together. SAWIA is also seeking updates from other Ministers on key matters impacting wine.

Opposition shadow ministers have also now been named including Eddie Hughes (Primary Industries and Regional Development) and Zoe Bettison (Trade, Tourism and Investment), with the final results for the Legislative Council (the Upper House) also having been declared. SAWIA looks forward to engaging constructively with all elected representatives.

SAWIA and the Wine Grape Council of South Australia (WGCSA) have made an announcement about our discussions of what the future may look like (Refer to Feature Article below). Thank you to those members who have already provided feedback, and I welcome additional comments or questions.  

SAWIA was invited to present at WGCSA’s recent roadshow around South Australia’s wine regions during April and May. SAWIA made a presentation to independent grape growers on the new labour hire licensing laws and on the importance of work health and safety, highlighting SAWIA’s services, advice and advocacy in these areas. SAWIA’s participation in the roadshow shows how the two organisations are working more closely together.

While some of the Wine Equalisation Tax and Rebate changes came into operation in late 2017, members are reminded that further changes take effect from 1 July 2018 (including WET eligibility criteria and the WET rebate cap reduction). SAWIA’s Notice to Members in October last year set out the relevant impact for wine producers.  

Watch for the 2018 South Australian Wine Industry Snapshot Survey that is being circulated this week. Quick and easy to complete, the 2018 survey will build on the 2017 results with each participant receiving a personalised report comparing their business against the aggregated results of other respondents.


 

FEATURE ARTICLES

SAWIA and WGCSA consider how to best serve the wine industry going forward

On 16 April SAWIA and the Wine Grape Council of South Australia (WGCSA) announced that discussions had commenced on how best to serve and support the South Australian wine industry into the future. A jointly prepared notice was circulated to members of both organisations, along with answers to frequently asked questions.

Early discussions are considering options for providing services and benefits at the state level, while exploring the best possible representation and funding model to ensure a viable and sustainable future with a united value proposition for members.

The governing bodies are well aware of the need to ensure that the existing services, rights and privileges of members of both organisations are maintained and protected, while exploring ways to enhance services, improve efficiencies and maximise outcomes for the industry.

Any recommendations that arise will only be considered following an exhaustive and comprehensive consultation and examination. Members of each organisation are integral to providing input, shaping recommendations and ultimately approving the decisions about the future.

There are numerous steps that will need to be considered and a timeframe of between 18 to 24 months can be expected. Regular communication updates will be provided on the discussions, to ensure members are kept informed during this period. In the meantime, it is business as usual.

SAWIA members can direct any feedback or questions to Brian Smedley on 8222 9277 or brian@winesa.asn.au. Feedback and/or questions can also be submitted via this link.


 

SAWIA secures $2 million investment in South Australia’s international wine tourism

SAWIA is delighted to have secured $2 million of funding for a project put forward by SAWIA, SA Tourism Commission (SATC) and Primary Industries and Regions SA (PIRSA) that focuses on increasing the number of international tourists visiting South Australian wine regions and their spend while in the regions.

The funding consists of $1 million from the Federal Government (through Wine Australia and part of the $50M package) and $1 million from the South Australian Government (through PIRSA) over a two year period.

South Australian wine producers are tipped to see a surge in demand for their wine, with the new $2 million marketing campaign aimed at increasing the number of international visitors to the state’s wine regions.

The South Australian application was the first state-based proposal approved by the Australian Government following assessment by an independent expert panel. The proposal was acknowledged as a sophisticated and targeted digital marketing campaign important for all wine regions in South Australia.

Further information will be available in the near future. In the interim, for more information SAWIA members can contact Brian Smedley on 8222 9277 or brian@winesa.asn.au.


 

South Australia’s wine tourism to benefit from $6.1 million investment   

In addition to the $2 million of funding at a state level (refer to above article), SAWIA is delighted that South Australia’s regions will benefit from an additional $4.1 million shared across nine other individual projects – for a total investment in South Australian international wine tourism of $6.1 million. The $4.1 million of projects include:

  • Australian wine culture project (National Wine Centre)
  • Australian wine bloggers conference (Wine Communicators Australia)
  • Riverland on the verge (Riverland Wine)
  • Consumer marketing – McLaren Vale international visitor campaign (McLaren Vale Grape Wine and Tourism Association)
  • Limestone Coast mixed dozen interactive wine trails (Limestone Coast Grape and Wine Council Inc.)
  • Adelaide Hills wine region – growing international markets, destination tourism and wine tourism industry capability (Adelaide Hills Wine Region Incorporated)
  • Driving international tourism for the Clare Valley wine region (Clare Valley Winemakers Incorporated)
  • Barossa Visitor Centre upgrade (Barossa Council)
  • Barossa first – The Belonging (Barossa Grape and Wine Association).

The grants were made available as part of the Australian Government’s $50 million Export and Regional Wine Support Package, with matching funding requirements. For more information, SAWIA members can contact Brian Smedley on 8222 9277 or brian@winesa.asn.au.


 

New Chain of Responsibility laws – Register now for important regional seminars

  Register now for the new Chain of Responsibility seminars that will help your business be prepared for important new laws that take effect in September 2018. The new requirements impact every wine industry business that influences the transportation of goods including grapes, bulk wine and finished product along with supplies and other items delivered by heavy vehicles greater than 4.5 tonnes.


The new legal requirements include provisions related to speeding, fatigue management, mass dimensions, load restraints and vehicle roadworthiness. This is important because all parties involved in the supply chain could potentially be held legally responsible should something go wrong.

The seminars will focus on what you need to know in terms of your place in the chain, what you can and cannot influence and providing you with tools to comply with the new requirements well ahead of the operational date and Vintage 2019.

To register for the seminar or obtain more information, click here or contact Zvonko Levak on 8222 9273 or zvonko@winesa.asn.au.


 

Gramp Hardy Smith Memorial Prize

  Congratulations to Christopher Robert Plummer, winner of the Gramp Hardy Smith Memorial Prize, as the most outstanding student graduating from either viticulture or oenology at the University of Adelaide in the 2017 academic year.

The Gramp Hardy Smith prize was established in 1938, by the South Australian Wine Industry Association as an annual academic prize to commemorate the lives of three prominent members, Messrs Hugo Gramp, Tom M Hardy and Sidney Hill Smith, who were tragically killed in a plane crash on 25 October of that year on their way to represent the industry in Canberra.

The prize, first awarded in 1940, is awarded in their honour to the most outstanding student graduating from either the Bachelor of Viticulture & Oenology or the Bachelor of Viticulture & Oenology Honours.


Each year, premium wines are chosen for the winner by the three companies associated with these men (Accolade Wines Australia, Pernod Ricard Winemakers and the Yalumba Wine Company) and presented alongside an engraved crystal decanter and wine glasses.

SAWIA is also delighted to announce that Steven Robert Fielke won the South Australian Wine Industry Association’s Silver Medal for the second best aggregate result for the 2017 academic year.

Please join us in congratulating Christopher and Steven on their outstanding achievements.

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INDUSTRY & GOVERNMENT

Important Update - Labour Hire Licensing scheme

As reported in past newsletters, the South Australian Labour Hire Licensing Act 2017 commenced on 1 March 2018, with a 6 month grace period meaning that a provider does not need to be licensed until 1 September 2018. However, the new Liberal State Government is reviewing this piece of legislation given the party’s past opposition to the legislation and reflecting industry concerns – particularly in relation to the coverage and application of the Act.

SAWIA continues to take the lead for the entire South Australian employer community in relation to the Act, making a detailed submission to the Deputy Premier and Attorney-General outlining our concerns and making numerous recommendations.

Given the uncertainty, at this point in time SAWIA’s view is for providers to hold off applying for a license until we have a better understanding of the new government’s position.

Notwithstanding the above, if you will be using labour hire or contractors after 1 September, then you need to ensure you understand the requirements of the Act and also ensure your service providers are aware of the potential need to have a licence before 1 September 2018. For more information, refer to SAWIA’s Fact Sheet: Is a labour hire licence needed? available from the Noticeboard of the Employee & Industrial Relations page of SAWIA’s website.

SAWIA will ensure members are kept informed of any developments. In the interim, SAWIA members can contact Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.

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EMPLOYEE RELATIONS / WORK HEALTH & SAFETY

Wine Industry Salary Survey Report available early June

SAWIA’s 19th annual Wine Industry Salary Survey Report will be available in early June, providing direct, unbiased, up-to-date remuneration information for non-award salaries and wages positions. This valuable document allows your wine business to know ‘where you sit’ in the market place, while using this information to attract and retain the right talent.

SAWIA has collected the data from wineries and vineyards right across Australia, with the report showing overall results as well as those on a state-by-state basis. The report also includes a small business component, helping smaller employers to better understand remuneration in that sector of the industry.

The survey report will be available in early June. To order or obtain more information, click here or contact Sarah Hills on 8222 9212 or sarah@winesa.asn.au.


 

Public use defibrillators – Coming to a cellar door near you

A recent Australian study identified that rapid first defibrillation by a bystander using an Automatic External Defibrillator (AED) was associated with a 62% increase in the odds of survival. While there is no legal requirement for sourcing and keeping an AED onsite, they can be very effective where a person has suffered a cardiac arrest.

SAWIA recently fielded a query from a member about the purchase and availability of AED’s at cellar doors for use by the public (and/or staff). Given that the price of AED’s has come well down, this is becoming a viable option that cellar doors may want to consider following a risk assessment.

Should a business buy an AED, additional measures should also be implemented including signage, AED specific first aid training and an equipment maintenance program.

If you need advice on how to manage a health or safety related matter impacting the industry, or need help developing procedures to manage an identified risk, SAWIA members can contact Zvonko Levak on 8222 9277 or zvonko@winesa.asn.au.


 

Augusta Zadow award applications now open

 

Applications are now open for the Augusta Zadow award, an annual grant to support initiatives, research or further education that improves health and safety for female workers in South Australia.  

The award was named after Augusta Zadow, who was an advocate for women's rights in the workplace and became South Australia's 'First Lady Inspector of Factories' in 1895. For more information, visit SafeworkSA’s website here.


 

Return to work premium – Reduction for wine manufacturing but grape growing lags

The South Australian wine manufacturing sector continues to perform better than average in accordance with ReturnToWorkSA’s new return to work premium rates for 2018/19, reflecting an 8% reduction on 2017/18. On the other hand, the grape growing sector continues to lag behind with an industry premium 18% higher than the average South Australian rate. Compared to last year, the industry premium rate for grape growing has improved but only by 0.5%.

The industry premium rates are updated annually by ReturnToWorkSA to reflect two key factors:

  • The overall average claim cost for all industries (of registered employers, excluding self-insured employers)
  • The number and costs of all ReturnToWork claims in a specific industry.

Due to overall improvements in the scheme, the average South Australian premium rate has fallen to 1.70%, which is the lowest in the scheme’s history and 5.5% lower than last year.

For a full outline of the new wine manufacturing and grape growing premium rates, SAWIA members can access a Notice to Members from the Noticeboard of the WHS page of SAWIA's website.

SAWIA continues to work on projects that improve industry wide rates, but as an individual business you can directly influence the amount of insurance premium you pay by actively engaging in some simple safety initiatives in your day to day operations. For more information, contact Zvonko Levak at SAWIA on 8222 9273 or zvonko@winesa.asn.au.


 

Beware the Fair Work Ombudsman – Barossa audit identifies 50% non-compliance

In a recent audit of 70 employers in the Barossa Valley, the Fair Work Ombudsman (the Federal agency responsible for enforcing awards and workplace laws) found that 50% were non-compliant, mainly in relation to incorrect rates of pay, non-compliant payslips and a lack of record-keeping requirements.

Of the 70 business audited, 7 were wine industry employers with 3 of those being non-compliant. Clearly, there are still wine industry employers who are not meeting the requirements of the Wine Industry Award and the Fair Work Act, and this is where membership of SAWIA can be of enormous benefit.

SAWIA members have quick and easy access to advisors with an understanding of issues specific to the wine industry. Members are encouraged to take advantage of unlimited telephone advice regarding anything from how to use shift provisions to long service leave calculations, taking of breaks, on-the-spot termination advice and unfair dismissal. Members also benefit from early publication of wage rates relevant to wine industry operations.  

For support and advice, or to obtain more information about the benefits of being a SAWIA member, contact Sarah Hills on 8222 9212 or sarah@winesa.asn.au.

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SALES MARKETING & PROMOTION

Alibaba is coming to Adelaide – South Australian China Export Forum 2018

  Alibaba (the global online trading giant) and business missions to China will be the focus of the South Australian China Export Forum on 8 June in Adelaide.

The Alibaba session of the forum will give SA exporters the rare opportunity to learn about the diverse platforms offered by Alibaba and how local businesses can benefit. The workshop will also cover Alipay as a tool to increase your access to the China market, plus developments in blockchain technology which are leading to greater source authentication – something highly valued by the Chinese consumer.


Registration is free for SAWIA members. To obtain the access code for free registration, SAWIA members can contact Craig MacDonald on 8222 9272 or craig@winesa.asn.au.


 

Solstice. A Midwinter Cellar Door

  Solstice. A midwinter Cellar Door will see 15 South Australian wineries and 5 South Australian food providers gather at the former Royal Adelaide Hospital foyer and courtyard on 15 June (5pm - 8pm) to pour winter wines and serve cockle-warming food. This event will celebrate the shortest day of the year like the pagans before us intended - feasting on wine and food!


Event goers are invited to download the 365daysofwineandfood app and purchase a $5 wine glass for entry, before chatting with the people who know their wines best and discovering their favourite new tipples for winter.

Solstice is brought to you by SAWIA, 365daysofwineandfood, Food South Australia and Adelaide - A Great Wine Capital of the World. The event was fully subscribed by wineries within a few hours showing the ever increasing popularity of these market development opportunities.

Watch for the next event which is coming soon. For more information, contact Claire Wald on 8222 9271 or claire@winesa.asn.au.

This initiative has been made possible through support and funding provided by the South Australian Government through Primary Industries and Regions SA.


 

International Wine Tourism – Important Data Warehouse sessions

With the upcoming $6.1 million investment in South Australian international wine tourism (Refer to Feature Articles above), your wine business needs to ensure it has an Australian Tourism Data Warehouse (ATDW) listing and that it is kept up to date.

The South Australian Tourism Commission will be hosting interactive ATDW information sessions to help operators decide what information to include and to learn the tips and tricks for getting noticed. Sessions last for one hour and a range of dates in June and July are available.  

For more information click here. To register, contact Brooke Williams on 7088 0114.


 

Wine exports reach new heights

 

The value of Australian wine exports increased by 16% to $2.65 billion, the highest value in a decade, while the volume of exports grew 10% to a near-record level of 844 million litres in the year ended March 2018, according to Wine Australia’s Export Report. Driving this growth, exports to China (including Hong Kong and Macau) increased 51% to a record $1.04 billion – the first time that Australia has shipped $1 billion of wine to one country.

The value of bottled wine increased 15% to $2.15 billion, at an all-time-high average value of $5.74 per litre.

Exports of wine in bulk containers hit record highs in both volume and value, up 10% in volume to 462 million litres and 19% in value to $486 million. Supply pressures from historically low Northern Hemisphere harvests are supporting the demand for Australian wine to fill the market gaps, increasing both volume and the average value of exported bulk wine.

With many regions experiencing export growth, of particular note bottled exports with a Barossa Valley label claim increased by 28% to $87 million, while Coonawarra jumped 77% to $47 million.


 

Wine Australia Exporter Workshop & China / Asia-ready workshops

  The full-day Wine Australia’s Exporter Workshop will be held on 23 August in Adelaide, with an emphasis on China and presentations from Wine Australia’s Heads of Market.


Following the recent China / Asia-ready workshops, the contents of those workshops are now available to Australian grape and wine levy payers:

Module 1: Export Readiness Check (20:08)
Module 2: Exporting to China: The Tips and the Traps (19:15)
Module 3: Negotiating with Chinese Wine Buyers (46:16)
Module 4: Promotion and Pricing in China (23:51)


 

ThincLab Chalons – Uni of Adelaide’s newest business incubator

  Is your wine business looking for opportunities to enter the European market? The University of Adelaide’s newest business incubator, ThincLab Châlons in Châlons-en-Champagne (France), has a team on the ground that can work closely with your business on evaluating opportunities across Europe. The incubator is based in an economic zone with a variety of tax and employment concessions available to businesses including a 5-year tax free period.


ThincLab’s team of business mentors, supported by interns from local universities, can work with your business to test possible markets in Europe, while developing a business model for the intended new market segment. By using this approach, you can test and validate an approach without the need to disrupt your life in Australia and take the focus off your core business.

For more information, click here or email thinclabchalon@adelaide.edu.au.


 

Trade mission to Israel

Senator Anne Ruston is leading a trade mission to Israel (3-10 October) to showcase the world’s leading businesses in agriculture, innovation and commercialisation. Dubbed the ‘Start-Up Nation’, Israel’s $100 billion economy is a regional powerhouse and boasts the world’s highest rates of entrepreneurship, a stunning culture of innovation, a global concentration of high tech companies and leadership in the advancement of medical, scientific, environmental and humanitarian developments.

To participate or obtain more information, visit the Export Opportunities section on the Export page of SAWIA’s website.

 

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SUSTAINABILITY

Murray Darling Basin Plan update

  The federal parliament has voted to uphold the Sustainable Diversion Limit (SDL) adjustment mechanism, meaning that the Murray Darling Basin Plan will continue to be delivered. The SDL adjustment is intended to recover 450 GL for the environment at the same time as allowing river communities to use an extra 605 GL.

In addition, approval was given to the Northern Basin Review, which means that irrigators in the northern basin will return 70GL less water to the river.


The Murray–Darling Basin Authority is confident that these amendments will improve the ability to deliver the environmental, social and economic outcomes required by the Plan.

More information can be found here, and SAWIA members are also welcome to contact Mark Gishen on 8222 9278 or mark@winesa.asn.au.


 

SAWIA’s Environmental Excellence Awards for 2018 – Nominate now  
 
Nominate now for SAWIA’s Environmental Excellence Awards, celebrating SAWIA members who provide leadership and inspire others toward strong environmental management. The awards recognise SAWIA members for adopting substantive and quantifiable improvements and leadership in key areas of environmental management.

There are now three award categories – one each for small-medium and large winery businesses (sponsored by efficiency consultants 2XE and by Tarac Technologies), plus a new category for viticulture, sponsored by energy broker / retailer Flowpower.

A new simplified nomination form is available from SAWIA’s website here with the nomination process designed to minimise time and effort. You can even phone in your application, by contacting Mark Gishen on 8222 9278 or mark@winesa.asn.au.

Entry is open to SAWIA members only, and there is no cost to enter. Nominations close on 31 July with winners to be announced at SAWIA’s Annual Members’ Lunch in September 2018.


 

SAWIA makes submission regarding alleged non-compliance with Basin Plan

SAWIA has made a submission to the Murray Darling Basin Royal Commission into alleged non-compliance with the Murray Darling Basin Plan.
 
SAWIA members have been concerned by reports of activities that might prevent the Plan from being implemented in a way that will achieve the outcomes that were intended. Key issues raised in our submission included concerns about the apparent disagreement between experts on the effectiveness of the Plan, and the need to incorporate new information into the Plan if objective science-based evidence becomes available.

Members can obtain more information or a copy of SAWIA’s submission by contacting Mark Gishen on 8222 9278 or mark@winesa.asn.au.

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OTHER

Federal Budget 2018 - What you need to know

 

Bentleys SA, SAWIA’s Wine Industry Partner, has prepared an overview of the 2018 Federal Budget that was circulated to SAWIA members the next morning.

Leading his third Federal Budget, Treasurer Scott Morrison focussed on tax cut “affordability” and delivering a “responsible” budget that will encourage consumer spending and economic growth, without damaging the reduction of the national debt and drive to surplus. The winners in the 2018 budget are taxpayers on lower income tax brackets, older Australians and small business.


Bentleys' team of tax experts has reviewed the budget in detail. Click here to read the full report.

In keeping with previous years, this year’s budget delivered few surprises. But the question remains – has Treasurer Scott Morrison done enough to convince the electorate that the Coalition Government should be returned to power? It is a fine balancing act for the Government as it endeavours to appease the electorate - which has not seen an increase in real wages for several years amidst rising household costs - while, at the same time, needing to maintain its position of being fiscally responsible and getting the economy back into surplus by 2019-20.
 
For more information, SAWIA members are welcome to contact Tim Siebert of Bentleys on 8372 7900 or tsiebert@adel.bentleys.com.au.  


 

2018 Coonawarra Australian Cabernet Symposium

 

Coonawarra Vignerons is hosting the third triennial Australian Cabernet Symposium on 5 - 6 July 2018 in Penola. The Symposium provides industry colleagues and wine lovers the opportunity to learn about the history of the variety, as well as the innovations and developments occurring in the fields of wine research, viticulture, winemaking and the marketing of Cabernet Sauvignon.

To register or obtain more information, click here.


 

Apply now for $30,000 Nuffield Scholarships

  Applications are now open for the 2019 Nuffield Scholarships, with successful applicants receiving a $30,000 cash bursary to study cutting-edge global agriculture.

The Nuffield Scholarship program aims to develop future leaders in Australian agriculture. This year there are up to 25 scholarships on offer, with 28 - 45 year old farmers and farm managers encouraged to apply.


Applications close on Friday 15 June. To apply or obtain more information, click here.

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Dates for your diary

2018