1 South Australian industry – August 2018 snapshot South industry – August 2018 snapshot

South Australian wine industry – August 2018 snapshot

The aim of this Welcome to the second benchmark We are grateful to the 126 wine study - the businesses of South that Snaphot is to provide Industry Snapshot - a collaboration of participated in this year’s study and full service advisory firm Bentleys SA have shared their honest assessments. wine businesses with and the South Australian Wine Industry This represents a 55% increase in the insights required Association. participation compared to last year. The 2018 study aims to equip wine We are delighted to receive this level of to inform decision businesses with the insights and support and involvement. making and to monitor information required to benchmark This year, business confidence is business performance and to inform improving across ’s wine performance. business decision making. regions, however profitability remains a Our aspiration is that this initiative will significant and widespread concern. We explore water contribute to the continued dominance Despite this, many wine businesses access as an and long term sustainability of the wine have plans to redevelop industry in South Australia. over the coming five years, and are issue, and The wine industry is complex. It can projecting net increases to the size sometimes be difficult to find the of their vineyards. Therefore, it is not redevelopment as an time to devote to improving business surprising that water consumption is opportunity. profitability, never mind the relevant expected to increase over the next information required to compare decade. Water access and security performance. We trust this report will remain significant concerns. fill this need by providing valuable While operating capacity was a little insights into business performance and lower during this year’s vintage, sentiment. inventories of red and white wine are in balance.

About Bentleys SA to the strategic advice and practical support required to build capability and Bentleys SA is a full service advisory propel growth. firm, which offers a range of specialisations to help ambitious Our expert R&D tax team offers the businesses get where they want to be. support, insight and tools required to claim tax offsets. Are you eligible? Our expanding Advisory practice provides enteprises - at every stage To request one hour with an advisor - at of the business lifecycle - with access no obligation - please contact us. 3

While productivity and automation We invite your ongoing involvement, are of increasing importance to wine suggestions and enquiry, as we strive businesses, staff numbers are expected to deliver meaningful insights to support to remain the same for the coming year. the growth of South Australia’s wine businesses. Free trade agreements continue to support access to new markets, and growing sales revenue is recognised as key to business success over the coming two years. There appears a significant opportunity for education programs to play a part in the ongoing success of the wine industry, particularly in relation to enabling access to available government incentives and to strengthening marketing and business planning capability. We hope you enjoy reading this report for more detailed findings. We look forward to designing additional solutions and resources in response to these findings.

Brian Smedley Tim Siebert Chief Executive Partner, Business Services South Australian Wine Industry Bentleys SA Association

About the South Australian Wine The association’s core functions are Industry Association to provide leadership and strategy, to represent the industry and lobby on its Established in 1840, the South behalf, and to provide advisory services Australian Wine Industry Association to members so they achieve great is the peak body representing the things that they couldn’t by themselves. viticultural and winemaking interests of the state. South Australian wine industry – August 2018 snapshot

About the snapshot

40 35 30 25 20 126 15 participants 10 5 0

This year, 126 wine businesses The participants participated in this study, with many from the larger wine regions, Location Business type representing smaller, private companies, which make their own wine and grow Participating wine businesses have More than half (57%) of participating their own . assets spread widely across South wine businesses are privately owned Australia. and operated. This study aims to provide wine businesses with the insights required to There is strong support from wine inform decision making and to monitor businesses located in major wine performance. regions, with 71% of respondents having assets in the , Responses were collected Hills or McLaren Vale. from May to June 2018 using an online business questionnaire. The participation of 126 Most regions increased their type wine businesses provides a sufficient participation this year. Notably, the sample to deliver reliable and valuable has increased its participation insights, which can help inform the by 82% compared to 2017. growth and development of South Currency Creek, Kangaroo Island, Australia’s wine sector. Southern Fleurieu and Southern Private company 57% For some regional analyses, we have Flinders regions are represented in the Trust, with trustee company 20% excluded responses if they are too few in Snapshot for the first time this year. Partnership 11% number in order to protect the identity of Sole trader 7% participants. Public company 2% Some comparisons are made with the Unit trust 2% feedback provided by last year’s 81 participants. Unincorporated joint venture 2% 5

Business size Source of revenue Business lifecycle The majority (92%) of participants are Eighty-nine per cent of participants Most participants consider themselves businesses with an annual turnover of draw income from wine making to be in the growth (34%) or mature less than $20 million. Forty per cent are activities, and almost three quarters (39%) phases of their life cycles. small businesses with revenue less than (74%) draw income from $1 million per annum. growing.

80% 80%

60% 60% business lifecycle 40% 40%

20% 20%

< $1m $1m-$5m $5m-$20m > $20m Grape Wine Mature 39% growing making Growth 34% Turnover financial year 2015/2016 Evolution 11% Turnover financial year 2016/2017 Succession 8% Startup 7% Exit 1% Facilities Most participants (81%) grow at least some of their own wine grapes and only 16% purchase all wine grapes processed. Many (61%) operate a cellar door. Seventeen per cent lease a grape processing plant.

Do you grow your own wine grapes? Do you operate a cellar door? Do you purchase a percentage of wine grapes processed? Do you own a grape processing plant? Do you operate a function centre, cafe, restaurant or similar facility? Do you lease a grape processing plant? Do you purchase all wine grapes processed?

0% 20% 40% 60% 80% 100%

Yes No South Australian wine industry – August 2018 snapshot

About South Australian wine businesses

While the average purchase price of Business confidence Environmental factors Australian wine grapes1 continues to Business confidence across all Of all environmental influences, energy rise, so too does business confidence industries in Australia has been trending costs continue to have the most among wine businesses in South up over the past four years5 and we negative impact on South Australia’s Australia. Export demand has have seen a slight improvement in wine businesses. contributed to an increase in prices confidence in this year’s Snapshot, and profits2. Today, South Australia Labour costs, and water costs and compared to last year. accounts for 51% of Australia’s wine access, are recognised as having a grape crush3. We are leading the More than three quarters (78%) of negative impact by two thirds of this country not only in production but also respondents are somewhat, very year’s respondents. Energy costs through innovation throughout the value or extremely confident about their and energy security are also major chain4. business prospects - an improvement concerns. in confidence compared to last year. Free trade agreements continue to The percentage of businesses worried have a very positive impact on South about future prospects has dropped Australian wine businesses, with over from 20% to 13% this year. 60% of respondents recognising their value.

How do you rate your current What impact are the following environmental factors level of business confidence? having on your business today?

AussieAussie dollar dollar ChangesChanges toto payroll payroll tax tax Changes to the EmergencyChanges Services to Levy ESL CompetitionCompetition - -Interstate Interstate business FreeFree trade agreementsagreements confidence Liquor licensinglicensing Foreign investment investment CompetitionCompetition - -International International ChangesChanges toto land land tax tax RetailersRetailers Labour availability availability Extremely confident 1% Energy security security Very confident 29% LabourLabour costscosts Somewhat confident 48% WaterWater costs costs andand access Not confident or worried 9% WETWET rebate changes Energy costs Somewhat worried 12% Energy costs 0% 20% 40% 60% 80% 100% Very worried 1% 0% 20% 40% 60% 80% 100% Very negative impact Moderately negative impact No impact Extremely worried 0% Moderately positive impact Very Very positive negative impact impact Moderately positive impact Moderately negative impact Very positive impact No impact 7

Inventory levels are about right Operating capacity at last vintage 1 PIRSA, South Australia Wine ScoreCard We asked participants to describe their For both 2017 and 2018 vintages, 9% of 2016-17, published 30 January 2018. current inventory levels of white and red respondents’ grape processing facilities 2 wine. were not utilised at all. Excluding these, Wine Australia, Australian wine sector 2017 at a glance - Report, published 5 February 2018. Over one third (38%) of respondents the average operating capacity of grape indicated that their inventory levels of processing facilities was slightly lower 3 Sofia Omstedt, IBISWorld Industry REport white and red wine were about right. for the 2018 vintage (76%), compared to C1214, Wine Production in Australia, May 2018 the 2017 vintage (84%). Given the 2018 4 Waite Research Precinct, Wine Innovation There appears to be more excess tonnage was less than 2017, the slight Cluster, viewed 23 July 2018 at https://www. inventory of red wine, with 41% of dip in capacity this year comes as no thewaite.org/waite-partners/wine-innovation- respondents indicating current inventory surprise. of red wine as either somewhat, very or cluster/ extremely high. 5 Roy Morgan Business Confidence Index, White wine appears to be in shorter 2010-2018, viewed 11 June 2018 at http:// supply, with 35% of respondents www.roymorgan.com/morganpoll/consumer- indicating low stock levels. confidence/roy-morgan-business-confidence

Current inventory levels of If you operate a grape processing plant, what was its operating white and red wine capacity during the 2018 vintage?

100%

40% 80%

30% 60%

40% 20%

20% 10%

0%

0%

w 1% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% lo low high high Very low Very Very high Very Extremely Extremely Somewhat Somewhat About right

White wine Operating capacity for vintage 2017 Red wine Operating capacity for vintage 2018 South Australian wine industry – August 2018 snapshot

Labour focus

The wine production industry is highly Recruitment challenges No difficulties for some capital intensive, however wages We asked survey participants if they Ten per cent of respondents indicated still account for a significant share of have experienced any difficulties they have had no difficulty recruiting industry costs. with recruiting suitably qualified staff suitably qualified staff for their In last year’s inaugural Wine Snapshot, (permanent or casual) and, if so, for businesses. labour costs (along with energy which functions. We looked closely at this group of costs) were recognised as having a A significant 45% of respondents respondents to see if we could identify significantly negative impact on South indicated they have experienced any shared characteristics. While they Australian wine businesses. challenges with recruiting vineyard staff, were located across many different This year, despite many businesses including viticulturists and vineyard wine regions, they were all in growth or seeking to increase productivity and managers. Also difficult to recruit mature stages of their life cycle, and are automation, we have found that current has been cellar door sales staff, with generally optimistic about their business level of investment in human resources almost one third (32%) of respondents prospects. is likely to be sustained, or even experiencing issues. Recruiting skilled increased. staff in hospitality, finance and trades has also been difficult, particularly in regional areas.

In which areas of your business have you experienced difficulty recuiting suitably qualified staff?

Vineyard, including viticulturalists Cellar door sales Cellar, including Hospitality, chefs, waiting staff Finance and administration Maintenance and trades Sales and marketing Laboratory Bottling Senior management Warehouse and supply No difficulty 0% 10% 20% 30% 40% 50% 9

Recruiting for the year ahead We asked participants how their number of FTEs is likely to change in 2018/19, compared to 2017/18. While productivity and automation Most indicated they expect their numbers to stay the same during are of increasing importance to vintage (80%) and outside of vintage wine businesses, staff numbers are (75%). expected to remain the same or A significant number expect FTEs to increase during vintage (16%) and increase over the coming year. outside of vintage (21%). Only very few expect their numbers to decline.

Changes expected to FTE staff in FY19, compared to FY18

Decrease

Stay the same

Increase

0 20 40 60 80

Outside of vintage During vintage South Australian wine industry – August 2018 snapshot

Pursuing profitability in a changing environment

Australia’s wine industry continues Seeking improved profitability Blended growth strategies to evolve at a rapid rate. Changing One third (33%) of this year’s On average, and in a similar fashion to legislation is just one of the factors respondents have expressed last year, respondents are implementing that can significantly impact a wine satisfaction with their organisation’s at least two growth strategies to further business’s profitability. In anticipation, financial health, indicating it as their profitability and sustainability. many business models have already ‘profitable and sustainable’ or made changes given the WET rebate Market penetration - the least risky of ‘generating a reasonable return’. will cease to apply on bulk wine. growth strategies targeting existing Significantly, two thirds (66%) have customers in existing markets - is the In recent times, with greater focus expressed a need to improve the most popular of growth strategies and on premiumisation and with strong profitability of their wine business, which is implemented by two thirds (66%) of demand from existing and emerging is a slight increase compared to last this year’s respondents. Geographic markets, industry profitability has year. expansion is less preferred as a strategy started to improve. Despite this, this year (59%) compared to last (70%), sustained profitability remains a Simple dashboards and financial as is product development (42% this significant concern for many wine reports can help businesses focus on year compared to 48% last year). One businesses. the key things that impact profitability. third (33%) are choosing the more risky option of diversification.

“Our industry is in a period of transition from Current financial health of What is your key growth business strategy? decline to growth which, if managed well, could provide a stable industry for the first time in many Profitable and sustainable decades. Generating a Generational change is reasonable return growth strategy very important. At the Profitable, but needs to improve moment there isn’t a Needs significant great deal of incentive improvement for young people to Market penetration Geographic expansion 0% 20% 40% 60% become grape growers. Product development Diversification Market penetration 66% Unless we take steps as Geographic expansion 59% 2017 an industry to address Product development 42% 2018 this situation, there will Diversification 33% be a crisis in the not too Respondents were able to select more than one strategy. distant future.” - 2018 respondent 11

A need to understand changing have put in place suitable strategies in legislation response. There are untapped A large proportion of this year’s Overall, the general lack of opportunities - and business respondents acknowledge they need understanding about changing more information on changing or new legisation indicates there could be a risks - associated with our legislation. roadblock - be it time pressure or even changing legislative complacency - which is preventing Among the legislation least understood environment. timely and strategic responses from is the Research and Development (R&D) wine businesses. If not informed and Tax Incentive, a Federal Government We urge wine businesses to prepared, wine businesses will not be program designed to incentivise able to maximise the opportunities become familiar with innovation. Eligible activities can receive these changes offer. sizable tax offsets, which can directly relevant legislation. improve an organisation’s cash position. For more details, refer to While there is more awareness of the page 18 or contact us. new liquor licensing laws, only 37% of respondents understand them and

With regard to recent or impending legislation, do you understand the changes and has your business implemented appropriate responses, where needed?

New liquor licensing laws New labour hire licensing laws New chain of responsibility obligations Mandatory data breach laws Single touch payroll Small business CGT exemptions R&D tax incentive

0% 20% 40% 60% 80% 100%

Yes No Need more information N/A South Australian wine industry – August 2018 snapshot

Vineyard redevelopment

As an industry, we continue to learn Size of vineyard for redevelopment Motivation for redevelopment about ways in which we can optimise Fifty five vineyards are flagged for Over one third (35%) of vineyards have the value and output of our vineyards. redevelopment across South Australia. been flagged for redevelopment to In this Snapshot, we have sought These 55 vineyards account for a total achieve a more desirable mix, to gain a deeper understanding of area of up to 1,950 hectares. and particularly so in the Riverland. plans and motivations for vineyard Most (80%) of these redevelopments Another quarter (25%) of vineyards redevelopment in South Australia. are planned for smaller vineyards, being flagged for redevelopment are driven by Thirty-eight per cent of this Snapshot’s 1 to 25 hectares in size. Another 9% a need to improve the grade of the fruit, participants graciously shared details of are planned for vineyards slightly larger, particularly so in the Barossa Valley and their intentions for redevelopment. 26 to 50 hectares in size. Coonawarra regions. We note that some of the sample sizes Wine businesses in the Barossa Valley Disease issues are being addressed are small, so the results are indicative region have flagged the greatest by 18% of respondents, some citing only. number of vineyard redevelopments. Eutypa as a current concern. Increasing yield was cited as a motivation for redevelopment by 11% of respondents.

Area mooted for vineyard Motivation for vineyard redevelopment redevelopment

Padthaway Padthaway

Mount Benson Mount Benson

Eden Valley Eden Valley

Riverland Riverland

Langhorne Creek Langhorne Creek

McLaren Vale McLaren Vale

Coonawarra Coonawarra

Adelaide Hills

Clare Valley Clare Valley

Barossa Valley Barossa Valley 02468101214 0 2 4 6 8 10 12 14

1 to 25 hectares Disease issues 26 to 50 hectares Improve grade of fruit 51 to 75 hectares Increase yield 76 to 100 hectares Varietal mix More than 150 hectares Other 13

Projected change in vineyard area Less certainty into the longer term by 2023 Few wine businesses are projecting Forty one per cent of participants any change to vineyard size between Almost 2,000 hectares shared their plans for redevelopment 2023 and 2028. Of the 49 vineyards for the next five years. Of those, almost with projections provided, 63% were of vineyards are one third (31%) indicated they expect expected to have no change. currently flagged for no change to the area of their vineyards Only one small vineyard in McLaren redevelopment, before 2023. Vale has been flagged to be reduced in with the primary motivation Thirty vineyards across 11 wine regions size by up to 25 hectares from 2023 to have been flagged for expansion, 2028. to achieve a more desirable together accounting for a net increase Seventeen vineyards across nine varietal mix. in area of approximately 1,425 wine regions have been flagged for hectares. expansion by up to 725 hectares net Eight vineyards across four regions from 2023 to 2028. have been flagged to be reduced in size, representing a net decrease of 225 hectares.

Net change in hectares before Net change in hectares from 2023 2023 to 2028

Padthaway Padthaway South Australia wine Mount Benson Mount Benson Eden Valley Eden Valley industry snapshot, Riverland Riverland Langhorne Creek Langhorne Creek 2017 McLaren Vale McLaren Vale

Coonawarra Coonawarra

Adelaide Hills Adelaide Hills Key findings

Clare Valley Clare Valley Barossa Valley Barossa Valley Tim Siebert 0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 14 Director, Business Advisory Services Less by 26-50 ha Less by 1-25 ha Less by 1-25 ha No change More by 1-25 ha No change +61 8 8372 7900 More by 26-50 ha More by 51-75 ha More by 1-25 ha [email protected] More by 76-100 ha More by 101-125 ha More by 26-50 ha bentleys.com.au/sa More by 126-150 ha More by at least 150 ha More by 51-75 ha South Australian wine industry – August 2018 snapshot

A focus on water

We operate in the driest state in the Annual water demand before 2023 Projected water demand 2023 to driest inhabited continent in the world, 2028 Almost half (48%) of this Snapshot’s so it is not surprising that water cost participants shared their projected Longer term water usage projections and access are significant concerns for water use. were provided for 56 vineyards for the wine businesses. Over sixty per cent of years 2023 to 2028, with only one participants in this study (both this year Over two thirds of these (68%) indicating its requirements are likely to and last) have indicated water cost and represent smaller vineyards with reduce. access have had a negative impact on comparatively low water consumption their business. (less than 2.5 ML/ha) planned through The majority of responses (80%) to 2023. indicated that no change in water The management of regional water consumption is anticipated. resources is somewhat complex, Some vineyards (5%) indicated they rely involving different federal, state and solely on rainfall or recycled water. An increase in water consumption from 2023 to 2028 is expected for the local authorities in each region. The The Riverland, home to large vineyards, remaining 18% of vineyards. ability of our industry to access high projects the most water consumption quality water, at a reasonable cost, per vineyard through to 2023. is recognised as a critical business success factor.

Annual demand for irrigation Projected change in demand for water before 2023 irrigation water 2023 to 2028

Padthaway Padthaway Mount Benson Mount Benson Eden Valley Eden Valley Riverland Riverland Langhorne Creek Langhorne Creek McLaren Vale McLaren Vale

Coonawarra Coonawarra

Adelaide Hills Adelaide Hills

Clare Valley Clare Valley

Barossa Valley Barossa Valley

0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 14

Less than 2.50 ML/ha 2.50 to 2.75 ML/ha Decrease 2.76 to 3.00 ML/ha 3.01 to 3.25 ML/ha Stay the same 3.26 to 3.50 ML/ha 3.51 to 3.75 ML/ha Increase 3.76 to 4.00 ML/ha More than 4.00 ML/ha 15

Water source Respondents indicated a strong reliance on bores and groundwater. Over the coming decade, projections indicated that many vineyards (39%), Water consumption is expected to across nine regions, will draw irrigation stay the same or increase across water from bores and groundwater. most wine regions. Businesses will Rivers and creeks are relied upon as the primary source of water by one quarter need a plan to manage their water (26%) of vineyards. costs. Twenty three per cent of vineyards draw irrigation water from other sources, including recycled water in McLaren Vale and Barossa Infrastructure Limited (BIL) water in the Barossa Valley.

Water source

Padthaway

Mount Benson Eden Valley Riverland

Langhorne Creek

McLaren Vale

Coonawarra

Adelaide Hills Clare Valley Barossa Valley

0 2 4 6 8 10 12 14

Bores and groundwater On property dams Mains Rivers / Creeks Other South Australian wine industry – August 2018 snapshot

Looking to the future

Key success factors Key barriers Professional development We asked participants to identify the Continued demand for SA wine was To help ensure our continued design key factors that will underpin their noted as critical and a potential key of meaningful training and professional success over the coming two years. barrier to success, selected by over development programs for wine Responses were varied, however sales half (51%) of the respondents. To help businesses, we asked participants to revenue rated as the most important overcome this barrier, we recommend nominate subjects of interest. success factor. establishing strong connections with There is substantial interest to learn markets, gathering feedback and New or export markets ranked as the about tactical marketing - including innovating to remain relevant. second most important factor, with marketing channels, digital marketing China’s continued growth noted as Having a shortfall of capital was of and social media - as well as strategic important by many. concern for 47% of respondents - marketing and marketing planning. perhaps not surprising given the extent Business planning was noted as of redevelopment planned for the next another key topic for professional five years. development, along with business Lack of water access was recognised evolution and succession, and efficient as a significant concern also. production techniques.

Top ten success factors Barriers to success Professional development needs

Marketing channels Social media Business plan Marketing plan Evolution/succession success key Efficient production factors barriers Strategy development Client relationship mgt Liquor licensing Financial literacy Outsourcing Leadership Sales New markets ChangesGrape in market price demand for SA wine Lack of capital Your accountant Industrial relations Distribution Sales Cellar door New/exportLack ofmarketsGrape access supply to water Changes in demand Regulatoryfor South Australian change wine Work health and safety Grape price DistributionSoil quality Lack of capital Profitability Tour ism Water Business continuity plan Cellar door Lack of water access Lack of water access Brand development Contracting Profitability Tourism Regulatory change Managing risk Water Brand strength Soil quality 0% 20% 40% 17

Conclusion

Delivering improved services While business confidence is generally expansion of vineyards over the next positive and continues to grow among five years. SAWIA and the Wine Grape Council of South Australian wine businesses, there There is apparent concern about South Australia (WGCSA) have begun appears no sign of complacency. joint discussions on how to best serve maintaining and growing sales revenue. and support the South Australian wine This year’s participants have To help address this concern, we industry into the future. expressed a clear desire to improve appeal to all South Australian wine business performance and practice, businesses to tell the story of their We are considering options for improved with profitability and professional . Promote your brand, your services and benefits at state level, while development recognised as important. region. Listen to, engage with and learn seeking to identify the best possible from your markets. Innovate. Build and Free trade agreements continue to representation and funding model for a protect our collective brand. support access to new markets, viable and sustainable future with a united however energy and labour costs are We thank all those who participated in value proposition for members. impeding progress. this snapshot and we encourage your continued support of this study, which We thank those who are supportive of Water access and security remain aims to celebrate and strengthen the these discussions and we invite others to key issues to be managed. However, wine industry of South Australia. call SAWIA to learn more. these concerns are not deterring the

Are you supportive of SAWIA and WGCSA discussions on how to best serve the wine industry?

Chart Title

SAWIA and WGCSA

Supportive of these Supportivediscussions of discussionsNeutral 66% Not supportive of these Neutral discussions Need 16%more information Not supportive 6% Need more information 12%

South Australian wine industry – August 2018 snapshot

Legislation and incentives

New liquor licensing laws news/2018/chain-of-responsibility- such as salaries and wages, directly to changes-coming-mid-2018/ the ATO. A number of liquor licensing reforms took effect in South Australia on 18 Mandatory data breach laws For more information, contact Bentleys December 2017. The changes aim or go to: www.bentleys.com.au/ In February 2018, new laws were to create more efficient processes for knowledge-centre/stp/ activated as part of an amendment to industry. Licence-holders can continue the Privacy Act to require Australian Small business CGT concessions to operate under the new laws without entities, with an annual turnover of needing an updated licence. Small businesses may be eligible for a more than AU $3 million, to adequately range of capital gains tax concessions For more information, contact SAWIA or protect any personal information they on assets used to conduct business. go to: www.winesa.asn.au/members/ hold. Should a data breach occur, the advice-information/liquor-licensing/ entity is responsible for assessing the For more information, contact Bentleys risk of harm to individuals and taking or go to: www.ato.gov.au/Business/ New labour hire licensing laws appropriate action. Serious breaches Small-business-entity-concessions/ The South Australian Labour may incur significant financial penalties. Concessions/CGT-concessions/ Hire Licensing Act 2017 (the Act) For more information, go to: www.oaic. R&D Tax Incentive commenced operation on 1 March gov.au/agencies-and-organisations/ 2018, requiring providers of “labour The Research and Development guides/ hire services” to be licensed, with the (R&D) Tax Incentive is a market-driven requirement to hold a licence effective Single touch payroll program, which encourages Australian from 1 September 2018. However, businesses to invest in innovation. Single touch payroll is a reporting following extensive stakeholder The incentive takes the form of either requirement for employers which feedback the State Government has a potentially sizeable tax refund or a came into effect from 1 July 2018 for decided to postpone the enforcement considerable tax reduction. employers with 20 or more staff (and of the Act until 1 February 2019. will come into effect on 1 July 2019 for For more information, contact Bentleys For more information, go to: www. employers with fewer staff). Employers or go to: www.bentleys.com.au/ winesa.asn.au/members/advice- will be required to report payments, solutions/rd-incentives-innovation/ information/employee-industrial- relations/ New chain of responsibility obligations On 1 October 2018, the Heavy Vehicle National Law will be amended to provide that every party in the heavy vehicle transport supply chain has a duty to ensure the safety of their transport activities. In practical terms, this primary duty represents an obligation to eliminate or minimise potential harm or loss (risk) by doing all that is reasonably practicable to ensure safety. SAWIA conducted seminars on the new responsibilities in June and July 2018. For more information, contact SAWIA or go to: https://www.winesa.asn.au/ login/?path=/members/new/member- 19

Support for wine businesses

Bentleys SA is a full service advisory The South Australian Wine Industry firm. We help enterprises achieve their Association, is the peak body for wine objectives and get where they want to businesses in South Australia. be. Our expanding range of advisory, We provide a broad range of services accounting and audit services includes for our members to support the strategic business advisory services, success and performance of their R&D tax incentives, wealth management, businesses. specialist taxation, corporate recovery, and banking and finance. Our services cover industrial relations, employee relations and human We can help you achieve your resources, work health and safety, aspirations. Contact us for a environment, market development and no-obligation consultation. agribusiness growth. To learn more, please contact:

Business Development Member services Bentleys SA South Australian Wine Industry Association [email protected] +61 8 8372 7900 [email protected] +61 8 8222 9277

With any feedback on this snapshot, or suggestions for future instalments, please contact us. 20

Bentleys SA South Australian Wine Industry Association (SAWIA)

Level 2, 139 Frome Street Adelaide 1st Floor Industry Offices, National Wine Centre South Australia 5000 Botanic Road, Adelaide South Australia 5000 Telephone +61 8 8372 7900 Telephone +61 8 8222 9277 [email protected] [email protected] bentleys.com.au winesa.asn.au/home/join-us

A member of Bentleys, a network of independent accounting firms located throughout Australia, New Zealand and China that trades as Bentleys. All members of the network are affiliated only, are separate legal entities and not in partnership. Bentleys is also a member of Kreston International – a global network of independent accounting firms. Limited liability by a scheme under Professional Standards Legislation.

SAWIA is a state industry association made up of members who are wine producers and wine grape growers that pay an annual voluntary membership fee to access: • Representation and leadership • Advice and information • Products and services • Promotion and opportunities.