The Australian wine industry is warning that hefty taxes could see many small boutique wineries go to the wall.
The Winemakers Federation has been calling this week for a tax break on some 1580 wineries. It wants the first 600,000 litres of domestic wine sales in Australia exempt from the wine equalisation tax and small wineries exempt from the tax for the first 1000 tonnes of wine they produce.

At the moment, the Federation say, every A$15 bottle of wine is taxed almost A$4 in tax. Wineries, meanwhile received only 44c in profit.

One winmkaer was quoted in today's Australian press saying: "The impact of removing the tax would mean that I would get $1 to $2 a bottle instead of 44c with up to $6 going to the Government.

"To remove the burden of the wine equalisation tax will allow us to look to the future, under the present regime the future for us looks pretty bleak."