An increase in research and development spending has been approved by the Australian wine industry and federal government.

The rise will see the R&D levy increase from A$3.00 to A$5.00 per tonne with a matching government grant.

Winemakers Federation of Australia chief executive Stephen Strachan said R&D investment delivered an eightfold return.

The new levy comes into force this week in advance of the 2005 vintage.