December 2019

 

FEATURE ARTICLES                                                                                      

New National Alcohol Strategy
Liquor license fees may shock
Great gift idea – wine course gift vouchers
Solar Energy and Energy Efficiency Information Sessions 

INDUSTRY & GOVERNMENT

Land Tax – the facts revealed
Applications open for ThincLab

EMPLOYEE RELATIONS & WORK HEALTH SAFETY

New Committee Chairs invite your participation
Join the Payroll Discussion Group
Public holiday ready reckoner
Lessons to be learnt from underpayments     

SALES MARKETING & PROMOTION

Global market conditions update
Launch of Business Mission Calendar
Entries open for Decanter awards
Bumper SA cruise ship season

SUSTAINABILITY

Is your electricity supply reliable
Climate and Carbon in Agriculture 2020  

OTHER

AgTech adoption showcase
Dates for your diary


 

Message from the Chief Executive

The State Government’s Bill to lift the GM moratorium has been defeated. While the wine industry is not directly impacted, many concerned grape growers and wineries were supporting the continuation of the moratorium based on the clean and green image for South Australian produce.

SAWIA has also been engaged in discussions with PIRSA given the ACCC market study into wine grapes raised concerns about South Australia’s legislated terms of payment for purchases of wine grapes. These payment terms are also included in the wine industry’s voluntary code of conduct which is subject to a separate review. SAWIA is concerned with the ACCC’s recommendations and potential impact on South Australian wineries and growers.

A new National Alcohol Strategy 2019-28 has been agreed by all States and Territories. On balance, SAWIA is pleased with the content of the document. Refer to the Feature Article below for details.

SAWIA is actively involved in the preliminary task of reviewing the State Government’s directions toward a new Biosecurity Act. You can expect to hear more about this, as well as the Container Deposit Scheme Review, over the next few months. As well, we are awaiting the outcome of the pregnancy labelling debate. SAWIA will continue to strongly advocate and represent your interests.

Aldi has made an application for 6 producer licences in South Australia. SAWIA is concerned that this licence type is not suited to the more relevant Packaged Liquor Sales Licence. SAWIA has dealt with the previous government’s suggestion to allow wine sales in supermarkets, which was not supported and subsequently withdrawn. SAWIA has lodged an objection with the Licensing Authority and we await a hearing date.  

Congratulations to SAWIA member Pernod Ricard Winemakers for being the first large wine company in Australia to achieve 100% renewable electricity. As a past winner of SAWIA’s Environmental Excellence Awards, this demonstrates strong ongoing leadership of our industry.  

On behalf of all SAWIA staff I wish each of you a merry Christmas, a happy new year and a great vintage in 2020. Please remain safe over the holiday period and look out for your family, friends and colleagues.

 


 

FEATURE ARTICLES 

New National Alcohol Strategy

 

 

A new National Alcohol Strategy 2019-28 has been agreed by all States and Territories. This strategy will guide Government policy and legislation in regard to alcohol, but nothing will happen unless Government takes action.  

On balance, SAWIA is pleased with the responses set out in the document. This outcome is particularly important for wine given the strategy covers the availability, price and promotion of alcohol including alcohol related harm and its impact on the community.  

The Federal Government has ruled out volumetric taxation and the State Government has ruled out minimum unit pricing of alcohol
.

One of the policies set out in the document is the national standardisation of responsible service of alcohol. This is a worthy goal which SAWIA has been pursuing for a decade, but we still need state governments to take the initiative for change. 

For more information, SAWIA members can contact Brian Smedley on 8222 9277 or brian@winesa.asn.au


 

Liquor licence fees may shock


 

 

Licensees that used to have a Direct Sales Licence will likely be in for a shock come licence renewal time in 2020. Most old Direct Sales Licenses have been transferred to the new Packaged Liquor Sales Licence, which costs upwards of $1800 per year. The main type of businesses that are expected to be covered by this licence are bottle shops, specialist wine merchants, specialist grocers and on-line businesses.

If your business is holding one of these licences, carefully review its suitability and take appropriate action as needed.

SAWIA has been advocating for members in relation to this matter, and Consumer and Business Services has decided to waive certain application fees until 31 July 2020.

New liquor licensing laws came into operation on 18 November 2019, bringing effect to a host of changes including new licence categories and a different fee structure.

For more information, SAWIA members can refer to the Notice to Members or contact Business Services Manager Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.


 

Great gift idea - wine course gift vouchers

 

 

We are having lots of fun promoting gift vouchers for SAWIA’s National Wine Education and Training Centre.

A wine course gift voucher is the perfect Christmas present for the wine lover in your life. Our courses are a great way to learn more about wine in a fun and friendly environment. Our brilliant team of educators includes Hylton McLean, Sid Pachare, James Boden and Lucien Alperstein, all of whom have extensive experience across the wine industry. 

Vouchers are available for each of our wine education courses and are valid for three years from date of issue.

Courses are held at the National Wine Centre in Adelaide.

Click here for more information about the wine courses or to purchase a gift voucher, or contact Rhys Howlett on 8222 9271 or rhys@winesa.asn.au.


 

Solar Energy and Energy Efficiency Information Sessions

 

 

Registrations are now open for regional information sessions on solar energy and energy efficiency for the wine industry.

The information sessions are being offered by P4B Solar & Energy Solutions, SAWIA’s Wine Industry Partner. Topics to be covered include:

 

  • Small Business Electricity Footprint: What is happening in the market and how to avoid the continual increase in electricity prices
  • Traditional String-Connected Solar Systems vs Optimised systems: Understanding the differences and how they impact ROI and performance
  • Case studies from wineries who have invested in solar: Lessons from existing winery systems, issues experienced as well as old system upgrades and benefits
  • Understanding the Clutter: What you need to understand when considering solar for your winery
  • Power Factor Correction: What is it and why is it important for winery operations
  • A brief Q&A session with winery owners and operators who have already made the move to solar.

There is no cost to attend these breakfast seminars.

Click here for more information including dates, locations and registration details, or contact Dominic O’Leary on 0422 162 981 or dominic@p4b.com.au.

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INDUSTRY & GOVERNMENT

Land Tax - the facts revealed

 

 

South Australian wine businesses may experience increased Land Tax when the ‘Aggregation’ bill commences on 1 July 2020.

Although vineyard or other primary production land that was previously exempt remains exempt, wine businesses need to stay mindful of any non-primary production land, such as manufacturing, warehousing, admin and cellar door operations.

Different holding structures are impacted in different ways. It can be confusing to know if and how you’re impacted, and what your next steps should be. There will be options to make ‘holding’ changes to reduce land tax exposure. These options need to be weighed with other costs and considerations, such as capital gains and stamp duty, before deciding the best actions.

If your wine business owns industrial and commercial land, you should seek expert advice so your circumstances can be considered and options outlined.

It’s important for wine businesses to understand the implications of the bill and not pay more Land Tax than necessary.

Bentleys SA’s team of tax experts has prepared a must-read Land Tax Aggregation Bill Summary. SAWIA members can contact Tim Siebert of Bentleys SA (SAWIA’s Wine Industry Partner) on 8372 7981 or tsiebert@adel.bentleys.com.au for more information.


 

Applications open for ThincLab

 

 

Cohort 2 of the ThincLab International Incubator Program will commence in February 2020. This program is for Australian based startups or SMEs looking to explore opportunities to expand into Asia or Europe via ThincLab Singapore and ThincLab Chalons (France).


The program is comprised of six workshops held in Adelaide supported by an online learning platform. Those participants based regionally or interstate are invited to join via video conference.

Following the six workshops, up to six participants will be selected to travel to either ThincLab Châlons (France) or ThincLab Singapore to undergo incubation, including a one-week intensive induction on-ground.

This is a free program co-funded by the University of Adelaide and the Australian Government's Entrepreneur's Programme. Click here for more information, or contact the Program Manager on 8313 8358 or thinclab_inter@adelaide.edu.au.

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 EMPLOYEE RELATIONS / WORK HEALTH & SAFETY

New Committee Chairs invite your participation


 

 

New Chairpersons were elected at SAWIA’s Employee Relations and Work Health and Safety Committee meetings on 3 December. New Chair of the Employee Relations Committee is Jo Ludlow from Yalumba Family Winemakers, while the Work Health and Safety Committee is chaired by Steven Todd of Kay Brothers. 

The two committees review proposed changes to legislation, recommend actions to SAWIA’s Executive Committee and develop tools to help members with industrial relations, human resources and work health and safety issues in their workplace.

Both Jo and Steve greatly encourage SAWIA members to join and contribute to the work of the two committees. To express your interest or obtain more information, contact Business Services Manager Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.


 

Join the Payroll Discussion Group

 

 

SAWIA’s Payroll Discussion Group has resumed holding regular meetings, allowing SAWIA members to meet and discuss practical payroll issues and related matters.

The group met on 27 November in Adelaide and discussed a range of topics including the application of hours of work and rates in the Wine Award, a key personal/carer’s leave decision, a backpacker tax decision and 2020 public holiday announcements.

It was great to see a strong level of participation and collaboration, with numerous topics suggested for future meetings including Restaurant Award rates, Long Service Leave entitlements, and Rostered Day Off (RDO) arrangements under the Wine Award.

Attendees also highlighted their interest in building networks and having the ability to share experiences with payroll systems (MYOB, Xero, Deputy, QuickBooks etc).

SAWIA members are encouraged to join this group and bring your questions and issues along to meetings. To join or obtain more information, contact Business Services Manager Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.



Public holiday ready reckoner

 

 

Public holidays for Christmas, New Years and the vintage period are fast approaching. SAWIA has compiled and summarised the upcoming public holidays for 2019-20 in a Notice to Members available from SAWIA’s website.

For more information, SAWIA members can contact Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.



Lessons to be learnt from underpayments

 

 

SAWIA members should learn important lessons from the mistakes of others following reports of underpayments by high profile employers.

Earlier this year, a major retailer revealed that more than 5,000 of their staff were underpaid around $300 million dollars in total. This underpayment occurred because annual salaries provided to workers through their employment contracts did not adequately cover pay entitlements under the modern award

The issue has escalated this month with a class action lawsuit being filed that estimates the underpaid amount at more than $620 million dollars.

It has also been reported this month that the South Australian Government is expected to back pay more than a million dollars to youth workers who remained on duty during their lunch breaks. This decision related to a dispute involving three workers who alleged they had not been able to take their entitled breaks while at work.

These matters highlight that the industrial relations system is very complicated and, no matter how well resourced any business is, it can be exposed to legal proceedings arising from underpayments. This can have significant implications for your business, brand and profitability.  

Minimum pay, meal break entitlements and timekeeping records are key pressure points for employees covered by modern award and enterprise agreements, even if they are paid a salary. If you have any questions, contact Business Services Manager Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.

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SALES MARKETING & PROMOTION

Global market conditions update

 

 

The global wine market is under pressure due to increased competition and declining demand, but Australia is well-positioned relative to other wine producers according to Wine Australia’s latest State of Play report.


Global alcohol consumption generally has been declining since 2014 despite population growth, and competition from other alcoholic products is increasing, exacerbated by the changing preferences of younger generations.

Wine consumption declined by around 500 million cases (2%) in 2018, which is more than three times Australia’s total annual production. However, on the positive side, GDP per capita is increasing across most major economies.

Click here for the full report.


 

Launch of Business Mission Calendar

 

 

The Department for Trade, Tourism and Investment has released the business mission calendar for 2020, featuring outbound and inbound business missions led and supported by government agencies and industry groups.

The business mission calendar focuses on the nine key sectors of economic growth for South Australia. For more information, email DTTI.Missions@sa.gov.au.


 

Entries open for Decanter awards

 

 

Entries are now open for the 2020 Decanter World Wine Awards – the world’s largest wine competition. To enter or obtain more information, click here.


 

Bumper SA cruise ship season

 

 

Almost 183,000 passengers are expected to arrive in South Australian ports and anchorages over the next few months.

Latest statistics highlight how the growing cruise sector is a substantial contributor to the state’s economy. The most recent economic impact statistics from the 2018-19 season show the sector injected more than $145 million to South Australia - compared to $118 million the year before.

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SUSTAINABILITY

Is your electricity supply reliable?

 

 

A number of SAWIA members have reported recurrent problems with reliability of power supply despite SA Power Networks’ claim that “…South Australia’s 178,000km network of poles and wires is one of the most reliable in Australia.” These problems with reliability have serious detrimental impacts on the smooth running of wineries.

SA Power Networks want to know your experience. They are seeking feedback from users, using a simple interactive map and survey, where you mark your location and answer a few questions. The results will help to inform SA Power Networks where to target expenditure for upgrades to help strengthen the network for improved reliability.

SAWIA strongly recommends that wineries spend a few minutes to share your experience. Find your home or business on the interactive map, select a pin and rate your reliability experience.

For more information, SAWIA members can contact Mark Gishen on 8222 9278 or mark@winesa.asn.au.


 

Climate and Carbon in Agriculture 2020

 

 

The Climate and Carbon in Agriculture Conference 2020 is being held at the Adelaide Convention Centre on 31 March and 1 April 2020.

The conference will bring together people from across a wide range of commodity sectors, primary producers, government, investors and researchers to arm attendees with the latest climate and carbon related information and strategies for the agricultural sector. Put the dates in your diary now.


 

 OTHER

AgTech adoption showcase

 

 

 South Australia's first AgTech adoption showcase will discuss the latest thinking in AgTech innovation, and demonstrate its practical application and benefits on-farm through case studies from fellow producers, AgTech developers, and industry leaders.


The showcase is being held on 24 February in Adelaide. Click here for more information.

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Dates for your diary

2020