July 2019

 

 

FEATURE ARTICLES                                                                                      

Using contractors or providing workers? Register now for important briefings
Wine industry wage increases above national average
Five ways to accelerate growth
Nominate now for SAWIA’s Environmental Excellence Awards
China and Japan opportunities
ACCC interim report into wine sector
Levelling the Playing Field - Finlaysons Wine Roadshow
 

INDUSTRY & GOVERNMENT

Apply now for a Cellar Door Grant
State Budget lowers land tax rates

EMPLOYEE RELATIONS & WORK HEALTH SAFETY

Work Health and Safety Guidelines now available
Award wages to increase by 3%
Superannuation on leave loading? The rules have changed
First time in Australia – supervisor personally fined for safety breach
Payroll Tax Reconciliation webinar     

SALES MARKETING & PROMOTION

Earthsip at Tandanya
Entries open for Best of Wine Tourism Awards
Wine Australia’s Exporter Update: book now
Competitions and Promotional Opportunities

SUSTAINABILITY

Valuable new resource to manage energy demand
Solar panels – Choosing the best option
River Murray water allocations increase
Forum to improve recycling of irrigation drip tubes
Confused about kerbside recycling? Help is available  
 

OTHER

Next WSET course starts 29 July – Discounted price for SAWIA members
The Future of Wine Tax
National Vineyard Scan provides valuable data
Out now: new Vineyard and Winery Practices Survey
Women in Wine Awards: nominate now
Calling all University of Adelaide wine alumni
Annual Wine Law Conference
Dates for your diary


 

Message from the Chief Executive

SAWIA members have been offered an exclusive invitation to a workshop to help you understand ways to accelerate business growth. We are working with the Australian Centre for Business Growth through the University of South Australia on this project. Refer to the Feature Article below for details.

Recent workshops organised by SAWIA have included business planning, financial literacy and business evolution/succession. The workshops were well received and provided practical examples that could be adapted for any business to get better outcomes. We were pleased that Bentleys, SAWIA’s Wine Industry Partner, was able to deliver these workshops for the wine industry. Each workshop participant was offered a one on one follow up session, and there has been strong uptake of this opportunity. It is pleasing to see wine businesses taking action!

SAWIA is also working with Bentleys to develop the 2019 Wine Industry Snapshot survey which will soon be landing in your inbox. This important survey helps us prioritise the issues the wine industry is facing, understand levels of confidence and develop actions to address issues or gaps. The workshops mentioned above resulted from feedback provided through past Snapshots.

We have met with the State Government to discuss its proposed growth agenda which includes wine. A discussion paper is being prepared, along with a plan to engage with industry through various regional sessions. You can expect to hear more about this as it evolves over the next six months.

In talking more about growth programs, a new Wine Business Growth Program has been recently finalised with the State Government through PIRSA and details will be available next month.

The State Government has also released a Business Mission Calendar from June 2019 until December 2019. There are a number of opportunities for wine, many of which have been promoted through Wine Australia.

SAWIA’s annual member appraisal survey has been sent out, and we have reduced the number of questions this year to make it quicker and easier to complete. It is important to participate and tell us how you think we have been performing over the past 12 months. The appraisal helps to guide our priorities and actions. If you need the survey link, email rehnu@winesa.asn.au.


 

FEATURE ARTICLES 

Using contractors or providing workers? Register now for important briefings

  New labour hire licensing requirements covering providers and clients of ‘labour hire services’ take effect on 31 August 2019. Businesses that don’t meet requirements after this date can be subject to a $400,000 penalty and/or three year imprisonment for breaching the South Australian Labour Hire Licensing Act 2017.


The new legislation is particularly important for wine businesses, because it includes vineyard contracting providers/picking and pruning gangs where they meet the definition of ‘labour hire services’.

In July and August, SAWIA is running a series of practical briefings to help wine industry businesses and service providers understand and comply with the new obligations. We will outline:

  • When a licence is required and licence exemptions
  • Application requirements and costs
  • What clients of providers need to do
  • When penalties including imprisonment can be enforced
  • Inspection, reporting and auditing obligations
  • Overview of related Fair Work Act 2009 obligations.

Briefings will begin in Barossa on 24 July and move through Adelaide Hills (25 July), Langhorne Creek (29 July), Coonawarra (1 August), Riverland (8 August), McLaren Vale (14 August) and finish in Clare on 15 August. Click here to register or obtain more information.

To further assist SAWIA members, a Notice to Members and Factsheet are available here. For more information, SAWIA members can contact Business Services Manager Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.


 

Wine industry wage increases above national average

 

Wage increases in the Australian wine industry are higher than the national average according to SAWIA’s recently released 2019 National Wine Industry Salary and Benefits Survey.

Covering more than 1,900 employees across the Australian wine industry, the salary survey provides a wealth of information on salary and benefits practices and trends across 57 common wine industry positions.

Incentive pay, including bonuses and commissions, continues to form a significant part of the overall remuneration package for a number of positions including sales representatives, chief winemakers, chief viticulturists and operations managers. For small businesses, however, incentive pay is less common.

If you are not sure how much to pay your key employees or where you sit in the marketplace to attract or retain the right talent, order your copy of the Salary Survey now.

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


 

Five ways to accelerate growth

                                  


SAWIA has been working with the Australian Centre for Business Growth through the University of South Australia to offer an exclusive invitation to SAWIA members to a ‘Five Ways to Accelerate Growth’ workshop.

If you are a CEO or Managing Director of a wine business with 5-200 employees, this is a great opportunity to learn new skills to help grow your business. Best of all, there is no cost to participate.

Full details were recently emailed to members, and the event was fully subscribed within hours.

We are hopeful of being able to offer this opportunity to additional members. To express interest in a future workshop, SAWIA members can contact Rehnu Page on 8222 9277 or rehnu@winesa.asn.au.


 

Nominate now for SAWIA’s Environmental Excellence Awards

  Nominations are open for the awards that celebrate leadership and innovation in environmental management in the South Australian wine industry.

The Environmental Excellence awards recognise SAWIA members who adopt substantive and quantifiable improvements and leadership in key areas of environmental management.

There are three award categories – one each for small-medium and large winery businesses, and one for viticulture. A new simplified nomination form is available from SAWIA’s website here.


Entry is open to SAWIA members, and there is no cost to enter. Winners will be announced at SAWIA’s Annual Members’ Lunch in September 2019.

Details about previous winners can be found on SAWIA’s website here, while short videos about some of the past initiatives are available here.

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


 

China and Japan opportunities

SAWIA members have recently been emailed information about two interesting opportunities.

The first was a request from an established Chinese wine exporting company looking to export South Australian red wine with FOB price of around $5 per bottle.

The second was an opportunity for wine producers to participate in a film exploring wine trade relationships between Japan and Australia.

These opportunities have now closed. If you are a SAWIA member and want to be added to the database to receive information about future opportunities, provide your contact details to Rehnu Page on 8222 9277 or rehnu@winesa.asn.au.


 

ACCC interim report into wine sector

  The Australian Competition and Consumer Commission (ACCC) has released an interim report into the wine sector’s market operations.

SAWIA has made an important submission to the ACCC ensuring the views of the South Australian wine industry are strongly represented.

SAWIA’s submission addresses a broad range of matters including quality assessments, price transparency, payment periods, voluntary Code of Conduct and contracting practices.


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


 

Levelling the Playing Field - Finlaysons Wine Roadshow

  The impact of the ACCC Report on the Australian wine industry will be the focus of Finlaysons 27th Wine Roadshow. This follows the release of an Interim Report summarising the results of the ACCC’s major Market Study of the Australian wine industry.

A Final Report is due for release in September. The new rules are likely to have serious ramifications for the assessment, grading and pricing of fruit (including indicative pricing) and for the negotiation of fruit contracts (including payment terms). There could also be impacts on the terms of bulk and packaged wine supply agreements, particularly with major fruit buyers and wholesalers, distributors and retailers of wine.


The Australian wine industry may be subject to a mandatory code of conduct, or at least a strengthened voluntary code, which would be overlayed by the existing “unfair contract terms”, “unconscionable conduct” and “misleading or deceptive conduct” laws in the Competition and Consumer Act. In any event, it is expected that the ACCC will give industry strong guidance as to how it expects industry participants to behave.

Tickets for Finlaysons 27th Wine Roadshow are now on sale, with SAWIA members entitled to purchase tickets at a discounted rate. To obtain the SAWIA members' discount code, contact Rehnu Page on 8222 9277 or rehnu@winesa.asn.au
.

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INDUSTRY & GOVERNMENT

Apply now for a Cellar Door Grant

There is $10 million in Wine Tourism and Cellar Door Grants up for grabs and applications are now open.

The grants are part of the Australian Government’s $50 million Export and Regional Wine Support Package, being administered by Wine Australia. The objective is to support producers who add value by encouraging visitors to wine regions, and thereby encourage regional wine tourism.

The grants provide up to $100k per wine producer that had their cellar door rebate reduced from $500k to $300k.

The full grant program guidelines are available here. For more information, contact Wine Australia on cellardoorgrants@wineaustralia.com.


 

State Budget lowers land tax rates

Reductions in certain land tax rates were among the measures announced by the Treasurer in the South Australian State Budget on 18 June.

That same afternoon, SAWIA emailed members details of the measures that will potentially impact the wine industry. This includes:

  • An additional $33 million of funds for tourism marketing over the next five years
  • $60 million for construction of the International Centre for Food, Hospitality and Tourism Studies at Lot Fourteen
  • $37.5 million for biosecurity measures
  • $5 million to fight fruit fly outbreaks.

Bentleys SA, SAWIA’s Wine Industry Partner, has also produced a State Budget Brief that is available here.

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 EMPLOYEE RELATIONS / WORK HEALTH & SAFETY

Work Health and Safety Guidelines now available

  Unless you’re a safety expert, managing work health and safety can be complex and overwhelming. The 2019 Work Health and Safety Guidelines for the Wine Industry are your fully updated safety resource to run an effective work health and safety system.

This valuable resource is used by hundreds of wine industry businesses to plan, implement and review their health and safety systems.


The 2019 Guidelines include important updates from the 2014 version, such as:

  • Supply Chain Management covering your chain of responsibility obligations under the Heavy Vehicle National Law
  • Managing claims under the Return to Work Scheme, explaining the system and responsibilities as an employer.

The guidelines are divided into eight easy-to-read sections and include policies, checklists, Standard Operating Procedures, audit tools and more.

Click here to purchase your copy. For more information, SAWIA members can contact Business and Workplace Advisor Adrian Richards on 8222 9212 or adrian@winesa.asn.au.


 

Award wages to increase by 3%

Minimum weekly wages, including awards and the national minimum wage, increase 3% from the first full pay period on or after 1 July 2019, as previously communicated to SAWIA members.

SAWIA has prepared updated wage rates and allowance schedules for all relevant modern awards.

For more information, SAWIA members can contact Business and Workplace Advisor Adrian Richards on 8222 9212 or adrian@winesa.asn.au.


 

Superannuation on leave loading? The rules have changed

The Australian Tax Office (ATO) recently changed its rules on whether superannuation is paid on leave loading.

Under law, employers are required to pay superannuation on ‘Ordinary Time Earnings’ (OTE) and the ATO publishes detailed guidance on what type of payments are included as OTE. However, the ATO now requires additional evidence by an employer to justify that annual leave loading is not OTE.

More information and advice is available from SAWIA’s website here. SAWIA members can also contact Business and Workplace Advisor Adrian Richards on 8222 9212 or adrian@winesa.asn.au.


 

First time in Australia – supervisor personally fined for safety breach

A South Australian supervisor was personally fined $12,000, in a first for Australia. The supervisor repeatedly sprayed flammable liquid onto an apprentice and did not stop another employee from doing the same, in what was alleged to be a prank gone wrong.

It’s the first time in Australia that ‘reckless conduct’ obligations have been used to prosecute an individual in relation to bullying behaviour, which is significant for future cases.

SAWIA provides a range of services to assist supervisors and managers with work health and safety obligations. We can also help support wine industry employers to prevent and manage workplace bullying issues.  

More information about the learnings from this case is available to SAWIA members here.

If you have any questions or would like to organise an on-site visit to discuss any work health and safety issue, contact Business Services Manager Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.


 

Payroll Tax Reconciliation webinar

RevenueSA is offering a webinar that will help to explain the year end payroll tax reconciliation process for businesses in light of the changes to payroll tax that took effect on 1 January 2019.

A recording is available on RevenueSA’s webinar replay webpage.

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SALES MARKETING & PROMOTION

Earthsip at Tandanya

 

SAWIA’s inaugural sustainability event, Earthsip: For Your Palate, For Your Planet was held on 24 May at the beautiful Tandanya Gallery as part of the Adelaide: A Great Wine Capital program of pop-up CBD wine events.

Featuring 14 wineries, all with sustainability stories to share, Earthsip was well-attended with guests also enjoying wines, artwork and live music. Delicious food selections from the Tandanya Café featured a range of sustainably-sourced ingredients such as Crocodile spring rolls and Wild Boar sliders.

Feedback has been very positive including:

  • “Great event. Really well organised, a great space and keen/interested wine drinkers.”
  • “Fantastic exposure… a very well organised event in terms of promotion and logistics.”
  • “Innovative, exciting and important event.”

The next event will be held at MOD on North Terrace, on Friday 18 October. To register your interest, contact Rhys Howlett on 8222 9271 or rhys@winesa.asn.au.

Development and delivery of this program and/or activity is one part of the South Australian Wine Industry Development Program as administered by SAWIA, and is only possible from the support and funding provided by the South Australian Government through Primary Industries and Regions SA.


 

Entries open for Best of Wine Tourism Awards

  Do you have an exciting wine tourism innovation to share? Entries are now open for the Best of Wine Tourism Awards.

The awards, which celebrate excellence and innovation across wine tourism, are part of Adelaide and South Australia's membership of the Great Wine Capitals Global Network.


Local winners across the seven categories will be announced in September and will compete against nominees from nine other Great Wine Capitals in November 2019 at the international awards in Bordeaux, France.

Winning an award provides an excellent opportunity to gain recognition locally and overseas. It also offers an opportunity to benchmark your business against others within your region.

SAWIA members are strongly encouraged to apply, with applications closing on 19 July 2019.

 



Wine Australia’s Exporter Update: book now

Registrations are now open for Wine Australia’s Exporter Update seminar on 8 August.

Updates include the $50 million Export and Regional Wine Support Package, global market opportunities, current export data and the economic outlook, Sustainable Winegrowing Australia and the development of new strategic plans for the wine sector and Wine Australia.

Facilitated by MC Nick Ryan, this will be a highly informative event for wineries that are exporting or considering exporting.

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SUSTAINABILITY

Valuable new resource to manage energy demand

  A new Winery Network Charges and Demand Management Guide is now available, providing a clear outline of electricity tariff structures, strategies and technologies to help wineries manage energy demand. This is an essential resource for any winery that wants to understand the complexities of electricity tariffs and reduce electricity costs.

SAWIA is working in partnership with Green Industries SA to help wineries better manage their energy demand and reduce costs through a program that aims to improve energy efficiency demand management. The Guide was developed in conjunction with resource efficiency expert consultants 2XE.


Download the new guide here. A formal launch and information seminar about Energy Demand Management is planned for later this year.

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


 

Solar panels – Choosing the best option

  A recent audit has shown that up to 26% of all solar systems installed in Australia are sub-standard, with the potential to be highly dangerous.

With systems failing in as little as five years, or causing safety risks such as fires, P4B Solar and Energy Solutions (SAWIA’s Wine Industry Partner) has put together a concise summary of the key factors to consider for your new system.


Most businesses can look to save as much as 70% off of their electricity operating costs. The right equipment can minimise risks of fire danger, system meltdown or malfunction, expensive component replacement and system down time.  And of course, savings can be reduced by an inefficient or poorly installed system. The right installer is also vitally important as an optimised system is a highly complex piece of technology that, if not installed correctly, could present multiple troubles and setbacks.

A well designed and installed solar system has a lifetime performance guarantee of 25 years, with the expectation that it will still perform effectively for much longer. Click here for a concise guide on how to avoid unsafe cabling, poor panel mounting and cheap materials.

For more information, SAWIA members can contact Peter O’Leary on 0438 804 074 or peter@p4b.com.au.


 

River Murray water allocations increase

  The minimum opening irrigation allocation for the 2019-20 water year has been revised upwards to 31% (from the previous 26% and initial 14%).

As the projected minimum opening allocation is below 50%, private carryover will be available for eligible water users, allowing unused water from 2018-19 to be carried over for use in 2019-20 (up to 20% of the volume on entitlement).


Improvements across the water year are likely, with most inflows to the River Murray system historically occurring between July and November. Water availability projections indicate there is a 90% likelihood that allocations will increase to at least 91% during 2019-20 and there is just over an 85% likelihood that allocations will increase to 100%.

More information can be found on DEW’s website here. SAWIA will continue to ensure members are informed of any changes.


 

Forum to improve recycling of irrigation drip tubes

Sustaining Endeavour is planning a forum on 19 July 2019 in the Barossa Valley to facilitate discussions between supply businesses including Netafim Australia, WoodShield, Recycling Plastics Australia and key wine and viticulture businesses to help define a responsible long-term recycling solution for end-of-life drip-tubes in South Australia.

The forum aims to identify common objectives and opportunities for establishing long term supply chain partnerships to facilitate local recycling of drip-tubes.

An update from Sustaining Endeavour’s activities in other areas will also be presented including bioplastics as an alternative to soft plastics and building soil health.

Members interested in attending should contact Uma Preston, Sustaining Endeavour, on 0452 537 266 or uma.preston@gmail.com.


 

Confused about kerbside recycling? Help is available

Many people are confused about what you can and can’t recycle, but some clear help is now available from a new government website.

Each suburb has different recycling requirements depending where the waste is sorted and processed. You can find out details on the recycling available in your area for a wide range of specific items.

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

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OTHER

Next WSET course starts 29 July – Discounted price for SAWIA members

 

The next WSET Level 2 course will start on 29 July and run for nine weeks at the National Wine Centre. The course is provided by TAFE SA, on behalf of SAWIA.

SAWIA members and our past wine education students receive a $50 discount bringing the price down to $870 per student.

Feedback from first round of WSET Level 2 course participants has been excellent, with one participant indicating that “The course is fantastic…Gill and Josh have been great teachers, both easy to understand and very knowledgeable”.

There will be a Level 3 course on offer in early 2020. Successful completion of the WSET Level 2 is a requirement for Level 3, although in special circumstances candidates may take an assessment to determine their direct entry in Level 3.

Online bookings can be made here. For more information, contact Rhys Howlett on 8222 9271 or rhys@winesa.asn.au.


 

The Future of Wine Tax

  Mathew Brittingham of Finalysons Lawyers, SAWIA’s Wine Industry Partner, is presenting a webinar looking at possible future reforms to the taxation of wine and wine products.


Tax is a very contentious issue for the wine industry. Elements of the industry are currently lobbying for changes to the tax regime. However, any change has the potential to cause unintended consequences and of course there will be winners and losers. While there is little appetite for government to change tax systems at this time, that is sure to change, possibly sooner than expected.

To register or obtain more information on the upcoming webinar ‘The Future of Wine Tax’, click here.

SAWIA members will also want to watch out for a workshop, ‘Wine Tax Reform’, that Will Taylor of Finlaysons will be running at the Australian Wine Industry Technical Conference on 21 July.


 

National Vineyard Scan provides valuable data

 

For the first time, Australia’s grape and wine sector knows with a high degree of accuracy that it has 146,128 hectares under vine, and the locations of the plantings.

This follows completion of Wine Australia’s first National Vineyard Scan, which used artificial intelligence and satellite imagery to provide highly accurate vineyard data.

The results support anecdotal reports that there has been little change in the overall national vineyard area over the past few years.

The locations of all the vineyard blocks detected have been mapped, providing information that can be used for emergency biosecurity responses. The new method has also measured vine row length, making it possible to assess planting densities by GI region and sub-region for the first time.

For more information, click here.


 

Out now: new Vineyard and Winery Practices Survey

 

The Australian Wine Research Institute has released the May 2019 Vineyard & Winery Practices Survey.

The survey covers a wide range of practices ranging from pruning methods around Australia through to barrel age at time of replacement.


 

Women in Wine Awards: nominate now

 

The 2019 Women in Wine Awards are now open.

The awards acknowledge the work of women in the Australian wine industry and community leaders who champion equality and fairness for all sexes in the workplace.

There are eight categories to choose from and the awards application process is fully online, with nominations closing on 1 August.


 

Calling all University of Adelaide wine alumni

  The University of Adelaide’s Wine Alumni Network Steering Group has been bringing together and engaging wine alumni through the network’s activities since 2012.


Celebrating the history of wine at the University of Adelaide, the network connects alumni from Roseworthy Agricultural College and The University of Adelaide in the disciplines of viticulture, oenology, wine business and wine marketing. If you are a graduate of any of The University of Adelaide’s wine related programs, you automatically become a member of the Wine Alumni Network.

All past alumni are welcome to attend a Wine Alumni Breakfast on 23 July during the Australian Wine Industry Technical Conference.

For more information about the breakfast or the alumni click here, or email Carolyn McLean at carolyn.mclean@adelaide.edu.au.


 

Annual Wine Law Conference
 
This year’s International Wine Law conference will be held on the Mornington Peninsula from 2-4 August.

This year’s diverse academic program includes:

  • Insights into the future of wine tax
  • Exploration of regulatory issues that might stifle the promotion of non-traditional wine products
  • An overview of issues facing the wine industry in China as a result of copycat and counterfeit activity in China
  • Scientific insights into the analytical methods available to measure authenticity and quality and what is and isn’t likely to hold up in court.

To register or obtain more information, click here.

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Dates for your diary

2019

2020