Australia's legion of small wineries will get tax relief in the federal government next week, according to government sources in Canberra.

Producer organisations have been campaigning for relief from the so-called WET, wine equalisation tax, which is the major factor in the 40% government add-on to the retail price of wine.

The Australian wine industry is heavily skewed to the majors with the top 20 producers holding 89% of the market leaving 1778 others fighting for the 11% left.

WET has been resented since its introduction in 2000 and, since this is an election year and the wine industry is central to a number of crucial electorates, the government has strong political cause to respond.