Australia's booming wine industry is threatened by high federal taxes,
With small producers in danger of being driven out of business, an industry group warned yesterday.

Winemakers' Federation of Australia president Alister Purbrick said a new sales tax and problems with other taxes means many small producers are barely making money. He said the higher taxes were leaving producers with very little profit.

"Small winemakers simply cannot sustain winery and vineyard operations while carrying such a heavy taxation burden and realising such small returns", Purbrick said. "This is unjust and unsustainable," he added.