Peak industry body for Yarra Valley wine, Wine Yarra Valley, is calling on the federal government to continue the Wine Tourism and Cellar Door grant program, as concerns arise over the future of the key funding injection for wineries in the area.
Previously used by 12 businesses in the Yarra Valley, the program introduced by the former Coalition government has run for the three years; providing 29 per cent of the notional wholesale selling price of their eligible domestic cellar door sales.
Businesses have been able to receive a reimbursement of up to $100,000 (GST exclusive).
The usual application dates are believed to start on 1 July for businesses, with applications closing around 30 September.
However, there are concerns over the future of the program, as there has been no time frame confirmed for 2021/2022 applications, leaving businesses concerned for their profability, cash- flow, and ability to employ staff.
Wine Yarra Valley CEO Caroline Evans said 95 per cent of wineries in the Yarra Valley are family-owned and operated and a significant employer of the community, and the absence of this grant program could potentially have a negative flow on into the community.
“The other important thing to note is we are still not out of the impact on business that happened over the pandemic and that our region, which is where tourism is such a significant part of the sales mix, we were closed as we’re considered Metro Melbourne, the better part of two years,” Ms Evans said.
“It would be, another blow on to all of these family businesses, that, it would be a difficult thing for them to have to, experience on top of everything that’s been going on,” Ms Evans said.
The impact of the pandemic on businesses are ongoing, Ms Evans said, with staffing shortages impacting opening hours, and hundreds of thousands of visitors to local wineries.
“I would really urge the government not to add to that pretty heavy load by either reducing or stopping the Wine Tourism and Cellar Door grants,” she said.
Across the previous three rounds of the program, there have been 216 unique successful applicants.
With the funding total allocated funding for recipients capped at $10 million, wine businesses across Australia have only been receiving roughly 60 per cent of the funds they are entitled to due to over subscription.
Subsequently, Ms Evans is calling for the Wine Tourism and Cellar Door grant program to not only return under the new Federal Labor Government, but for the cap to be doubled to $20 million.
Liberal MP for Casey, Aaron Violi, said wineries have made investment decisions in the last financial year taking funding from the grant program into consideration.
“When you’ve made assumptions based on that,you haven’t got that money or that cash lying around because you’re going to invest in your business, so it will have impacts on their day to day operations and their long term success,” Mr Violi said.
According to a federal government spokesperson, “all financial commitments made by the former government are being reviewed in the leadup to this year’s Budget”.
