1 South Australian industry – SeptemberOctober 2019 2019 snapshot snapshot South industry – October 2019 snapshot

South Australian wine industry – October 2019 snapshot

The aim of this Welcome to the third instalment of We are grateful to the 100 wine the Industry businesses of South that Snapshot is to provide Snapshot - a collaboration of full service participated in this year’s study and advisory and accounting firm have shared their honest assessments. wine businesses with Bentleys SA and the South Australian This year, it is clear that demand Wine Industry Association. the insights required from global markets and advancing This study aims to equip wine technology solutions are having to inform decision businesses with the insights and positive impact on wine businesses. making and to monitor information required to benchmark their However, variable weather conditions, business performance and to inform water access, a small vintage in some performance. their business decision making. regions, and energy costs have all contributed to a drop in business Our aspiration is that this initiative will confidence. This is the first drop in We explore the contribute to the continued dominance confidence that we have seen in three and long term sustainability of the wine years. challenges, risks and industry in . It is encouraging to note that many wine opportunities for The wine industry is complex. It can businesses still have plans to grow the sometimes be difficult to find the net size of their , motivated wine businesses. time to devote to improving business to do so to manage disease and to operations, never mind the relevant achieve a more desirable information required to compare mix. performance. We trust this report will fill this need by providing valuable insights into business performance and sentiment.

About Bentleys SA wealth management including self-managed super funds, taxation consulting, research and development taxation incentive services, Celebrating our 40th anniversary and proudly independently business and residential finance and corporate recovery services. owned and operated in South Australia, Bentleys SA is an integrated business services and advisory firm helping Bentleys SA supports businesses and individuals throughout South businesses and individuals achieve their goals and Australia and the , and is a member of both the aspirations, so they can get where they want to be. Bentleys Network and Allinial Global. With our local expertise, national presence and international capability, we work with Our advisory, accounting and audit services are strengthened enterprises at every stage of their business journey to help them by our expanding range of specialisations, enabling us to prepare for tomorrow. support the broad needs of individuals and enterprises at every stage of the business lifecycle. In addition to To request a complimentary one hour consultation with one of our accounting, audit and taxation services, our specialisations expert partners, or to discuss how we can support you and your include strategic business advisory, financial planning and business, contact us today. 3

Operating utilisation of processing We thank you for your ongoing support, facilities declined during this year’s as we strive to deliver meaningful vintage, however inventories of red and insights to support the growth of white wine remain generally in balance. South Australia’s wine businesses. Global markets (particularly China) have been recognised as important to sales growth, and wine businesses recognise the value of the supportive free trade agreements. Marketing and business planning are among the skills favoured for professional development, and we will continue to support training programs to cater for these needs. We hope you enjoy reading this report for more detailed findings. We also encourage your feedback, which is so important as we continue to refine this study in time for next year’s fourth instalment.

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

About the South Australian Wine Industry Association From its beginnings in 1840, the South Australian Wine Industry Association is the peak body representing the viticultural and wine making interests of the state. The association’s core functions are to provide leadership and strategy, to represent the industry and lobby on its behalf, and to provide leadership advice and support to South Australian and wine businesses, assisting them to prosper within a dynamic and diverse industry. South Australian wine industry – October 2019 snapshot

About the snapshot

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100 10 participants 5

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This study aims to provide The participants wine businesses with the insights required to inform One hundred wine businesses Business type decision making and to participated in this study, with many Most participating wine businesses being private companies from the larger are privately owned and operated. monitor performance. wine regions, which make their own Responses were collected wine and grow their own . during the month of August 2019 using Location an online questionnaire. Participating wine businesses have The participation of 100 wine assets spread widely across South businesses provides a sufficient sample Australia. business to deliver reliable and valuable insights, There is strong support from wine type which can help inform the growth and businesses located in major wine development of South Australia’s wine regions, with one quarter of participants sector. having assets in McLaren Vale (27%) For some regional analyses, we have (26%) and the excluded responses if they are too few in Hills (23%). Private company 61% number in order to protect the identity of Trust with trustee company 18% participants. Sole trader 9% Some comparisons have been drawn Public company 7% from the feedback provided by the Partnership 5% 126 participants in 2018, and the 81 participants in 2017. 5

Business size Source of revenue Business lifecycle Two thirds (67%) of participants are Almost all (95%) of the participants Most participants consider themselves businesses with an annual turnover of draw income from wine making to be in the mature (42%) or growth less than $5 million. Eleven per cent activities, 73% draw income from (31%) phases of their lifecycles. are large businesses with revenue more grape growing, and 44% draw than $20 million per annum. income from other sources. One in ten participants expect to adjust the Turnover financial year 2018/2019 focus of their revenue sources. Turnover financial year 2017/2018 business 100% lifecycle

80% 80%

60% 60%

40% 40% Mature 42% Growth 31% 20% 20% Evolution 12% Startup 7% < $1m $1m-$5m $5m-$20m > $20m Wine Grape Other Do you intend making growing to change focus? Succession 6% Exit 2%

Facilities Tourism offering Most survey participants (80%) grow their own wine grapes, and only 15% Twenty nine per cent of participating purchase all wine grapes processed. One third of participants (32%) intend wine businesses offer a wine tourism to change their facilities within the next 12 months. Few (9%) lease grape experience. There is currently limited processing facilities, which represents a substantial decrease compared to last provision of commissionable products - year (18%). and opportunity to provide more.

Do you grow your own wine grapes? Do you operate a cellar door? tourism Do you own a grape processing plant? offering Do you purchase a percentage of wine grapes processed? Do you intend to change your facilities in the next 12 months? Do you purchase all Wine tourism experience 29% wine grapes processed? No tourism offering 24% Do you lease a grape Function centre or similar 14% processing plant? Restaurant 13% 0% 20% 40% 60% 80% Cafe 9% Accommodation 8% Yes Commissionable products 4% South Australian wine industry – October 2019 snapshot

About South Australian wine businesses

Despite increased global demand for Business confidence Processing utilisation Australian wine and improved pricing 1 Consistent with general commentary in This year, 28% of respondents have over the past five years , business 2 Australia , business confidence among processing plants operating at full (or confidence among South Australian the participating wine businesses has close to full) capacity - i.e. 91 to 100% wine businesses has declined, in fallen this year, compared to the two - which is consistent with the results of contrast to previous snapshots. previous years of this study. 2018 (26%). The impact of a challenging vintage Last year, 78% of participants were However, processing plants operating with unfavourable weather conditions somewhat, very or extremely confident. at 81% to 90% capacity has fallen since has contributed to reduced production This year, only 60% of participants have 2018 from 56% to 39% of respondents. in key regions. Some regions returned indicated they are positive about the The number of processing plants solid results, while others were down future of their business. compared to longer term averages. operating at 51% to 80% capacity Almost a quarter of participants (24%) has risen from 29% to 39% over the Asian export markets (and particularly have indicated that they are worried past three years, which may reflect the China) continue to play an increasingly about the future of their business, recent and gradual decrease in tonnage important role, as wine makers take 3 compared to only 12.5% last year. produced by Australia’s wine industry . advantage of free trade agreements and the value of the Australian dollar to explore new export markets.

Operating capacity of Business confidence processing facilities

91%-100%91-100

60% 81%-90%81-90

50% 71%-80%71-80

40% 61%-70%61-70

51%-60%51-60 30% 41%-50%41-50 20% 31%-40%31-40 10% 21%-30%21-30 0% Extremely Very Somewhat Neither Somewhat Very Extremely 11%-20%11-20 confident confident confident confident worried worried worried nor worried 0-10%0-10

2017 2018 2019 0 20 40 60 2017 2018 2019 7

Inventory levels are about right Environmental factors 1 Matthew Reeves, IBISWorld Industry Report We asked participants to describe their Of continued concern for South C1214, Wine Production in Australia, April 2019. current inventory levels of white and Australia’s wine businesses are the red wine, and both remain generally in high costs of doing business, including 2 National Australia Bank (NAB) Quarterly balance. energy, labour, and water costs. These Business Survey and quarterly NAB Business costs have been recognised as having Confidence Index; IBIS World Business Over forty per cent of respondents the most negative business impact Confidence Index, July 2019 indicated that their inventory levels of of all environmental factors on the 3 white (43%) and red wine (45%) were Wine Australia, National Vintage Report 2019, participating wine businesses. about right. viewed 4 September 2019 at https://www. On the flip side, free trade agreements wineaustralia.com/getmedia/c6ec25f0-d088- White wine appears to be in shorter and the value of the Aussie dollar were 406f-9dcb-a74a25e48193/VintageReport2019_ supply, with 16% of respondents recognised as having the most positive summary.pdf indicating extremely low stock levels. impact on wine businesses.

Current wine inventory Impact of environmental factors

Energy costs

Extremely low Water costs and access WET rebate changes

Vintage 2019 outcome Very low Labour costs

Energy security Somewhat low Labour availability

Retailers

About right Changes to land tax

Liquor licensing

Federal Government Somewhat high Competition - Interstate

Changes to payroll tax Very high State Government

Competition - International

Extremely high Aussie dollar

Foreign investment 0% 50% 100% Free trade agreements Very negative impact Moderately positive impact White Red 0% 10% 20% Moderately30% negative40% 50%impact 60% Very70% positive80% impact90% 100% Very negative impact No impact Moderatelynegative impact No impact Moderately positive impact Very positive impact South Australian wine industry – October 2019 snapshot

Labour focus

South Australia produces almost Skills in demand Impediments to attracting staff half of the country’s wine production Almost half (48%) of survey We asked wine businesses what they and Australia is the sixth largest wine respondents indicated they have believed to be the biggest impediment producer in the world, therefore offering experienced challenges with recruiting to attracting staff, and for one third substantial job opportunities for those skilled staff. (34%) of respondents the greatest willing to embrace a regional lifestyle. challenge was their regional location. Consistent with last year’s results, This year, while some wine businesses recruitment of suitable staff For one quarter of respondents (25%) are seeking to reduce labour costs and viticulturists has been most the greatest impediment was the costs through automation and internal challenging for one third (33%) of associated with employing someone, efficiencies, we have found that, more respondents, and suitable cellar door including wages, penalty rates, and the generally, the current level of investment staff have also been difficult to find. high salary expectations of candidates. in human resources is likely to be sustained. Recruitment of sales and marketing For another 20% of respondents, staff has become more challenging the greatest challenge was to find this year, with 27% of respondents candidates with the right skills, indicating difficulty compared to only experience and motivation. 7% last year.

In which areas of your business have you experienced difficulty What is the biggest recuiting suitably qualified staff? impediment to attracting staff?

Vineyard, including viticulturalists Cellar door sales Sales and marketing Finance and administration biggest Hospitality, chefs and waiting staff recruitment Maintenance and trades impediment Laboratory Cellar, including Senior management Bottling Regional location 34% Warehouse and supply Cost 25% No difficulty 0% 10% 20% 30% 40% 50% Lack of skills, experience 12% Lack of motivation 8% Varied, seasonal hours 8% Small labour pool 7% Red tape 3% Competition for skilled staff 3% 9

Recruiting for the year ahead We asked participants how their Recruiting new staff to a regional number of FTEs is likely to change in 2019/20, compared to 2018/19. location can be challenging, and can Most indicated they expect their staff require new engagement strategies. numbers to stay the same during What could you do differently to vintage (76%) and outside of vintage (71%). celebrate your regionality, and to attract people who are genuinely However, some expect FTEs to increase during vintage (17%) and drawn to regional employment and outside of vintage (21%). lifestyle? Only few expect their numbers to decline during vintage (6%) and outside of vintage (7%).

Changes expected to FTE staff in FY20

Decrease

Stay the same

Increase

0 20% 40% 60% 80%

Outside of vintage During vintage South Australian wine industry – October 2019 snapshot

Pursuing profitability in a volatile market

On many levels, the wine industry Improved profitability required Blended growth strategies in South Australia is delivering the Profitability continues to be a significant On average, and consistent with last conditions required for improved concern for South Australia’s wine year, respondents are implementing at business profitability. The balance businesses. least two growth strategies to further between supply and demand is the profitability of their business. improving, new technologies are Two thirds (67%) of this year’s enabling efficiencies and innovation, respondents have expressed a need Market penetration - targeting existing and supportive international conditions to improve profitability, and one quarter customers in existing markets - is are enabling export. (25%) have indicated a need to improve increasingly important as a strategy, profitability substantially (an increase of adopted by 78% of respondents this Notwithstanding, sustained profitability 10% compared to last year). year, compared to 66% last year. continues to be a significant concern for many wine businesses. Understanding A focus on quality, controlling costs, Diversification has lost some favour and managing the profitable parts of a managing production numbers and this year, with only 23% of respondents business and the controllable expenses pricing opportunities, seeking better adopting the highest risk strategy, is the key to success when value can ways of doing things, can allow compared to 33% last year. be influenced by vintage. producers to improve profit margins.

Current financial health of business What is your key growth strategy?

60%

50% growth strategy 40%

30%

20%

10% Market penetration 78% Geographic expansion 57% 0% Profitable and Generating a Profitable but needs Needing significant Product development 46% sustainable reasonable return to improve improvement Diversification 23%

2017 2018 2019 Respondents were able to select more than one strategy. 11

Improved understanding of new liquor and labour hire licensing New technology adoption legislation laws, and new Chain of Responsibility We asked our participants if they are obligations. There are untapped opportunities, implementing any automation or new as well as substantial business risks However, the R&D Tax Incentive and technology (such as tracking, satellite associated with our changing legislative the new Mandatory Data Breach laws or drone technology) to improve environment. remain understood by few. efficiencies or change processes. This year’s respondents showed mixed The R&D Tax Incentive offers eligible Almost one quarter of responding awareness of recent and impending Australian businesses the opportunity wine businesses (24%) indicated they legislation, suggesting further education to access significant rewards for are implementing a broad range of within the sector may be required. their innovation investment, while the new technologies (including artificial new data breach laws involve sizable intelligence, autonomous vehicles, Compared to last year, respondents penalties for businesses that experience digital imaging, robotics) across a wide showed substantial improvement in data base breaches. These threats and variety of functional areas (including their understanding of Single Touch opportunities can have a significant vineyard, cellar door, packaging, sales Payroll (which came into effect in impact on profitability and need to be and marketing). July 2018 for larger businesses and managed. July 2019 for smaller businesses),

With regard to recent or impending legislation, do you understand the What automation or new changes and has your business implemented appropriate responses, technology are you where needed? implementing?

...high resolution imaging to Single touch payroll identify canopy issues ...digital New liquor licensing laws imaging for plant stress and New labour nutrition monitoring...radio hire licensing laws control automation for irrigation... New chain of responsibility drones for crop density and obligations Small pest management...moisture/ business CGT exemptions pest/disease sensors...satellite New imagery for moisture / mandatory data breach laws mapping...artificial intelligence... R&D tax unmanned vehicles...robotics incentive 0% 20% 40% 60% 80% 100% throughout the vineyard, winery

Yes and packaging operations... No destemmer sorter on harvester... Need more information tracking devices...CRM update... N/A GPS marking... South Australian wine industry – October 2019 snapshot

Vineyard redevelopment

Wine businesses in South Australia Size of vineyard for redevelopment Motivation for redevelopment continue to explore ways to grow Thirty two wine businesses located This year, the most common reason their vineyards, improving productivity across South Australia have flagged 35 for pursuing the redevelopment of while also building resilience against areas of land for redevelopment, which vineyards was to address disease unpredictable weather conditions. collectively represent an area of up to issues (40%). Thirty-two per cent of this year’s 950 hectares. For another 29% of vineyards, the participants graciously shared details of All redevelopments are planned for primary motivation for redevelopment their intentions for redevelopment. parcels of land less than 50 hectares was to improve the varietal mix. We note that some of the sample sizes in size, with the vast majority (91%) of Increasing yield was cited as a are small, so the results are indicative redevelopments planned for plots of motivation for redevelopment of 31% of only. less than 25 hectares. vineyards. The Barossa Valley has the greatest number of redevelopments planned.

Area mooted for vineyard Motivation for vineyard redevelopment redevelopment

Riverland

Clare Valley Clare Valley

Eden Valley Eden Valley

Mount Benson Mount Benson

Coonawarra Coonawarra

Langhorne Creek Langhorne Creek

Adelaide Hills

McLaren Vale McLaren Vale

Barossa Valley Barossa Valley

0 2 4 6 0 2 4 6

Varietal mix 1 to 25 hectares Disease issues 26 to 50 hectares Increase yield Improve grade of fruit Other 13

Projected change in vineyard size Fewer wine businesses are projecting change to vineyard size between 2023 One third (33%) of participants shared and 2028, and only 7% of survey their plans for redevelopment over the participants have indicated their plans Among this year’s coming decade. for redevelopment have changed in the participants, Eighteen vineyards are flagged by past 12 months. respondents for expansion before productive land for Of the 33 wine businesses that shared 2023, adding approximately 900 extra wine grape growing is their redevelopment plans only 44% hectares to South Australia’s wine expected to make any change to their expected to increase by production. Only two respondents are vineyard’s size in the longer term. expecting to reduce their vineyard size approximately 850 by 2023 by a combined total of up to Only one small vineyard has been hectares by 2023, with 50 hectares. flagged to be reduced in size by up to the primary motivation to 25 hectares from 2023 to 2028. Therefore, respondents’ productive address disease issues. land is expected to increase by In the longer term (2023 to 2028), approximately 850 hectares in net area 11 vineyards across ten wine regions by 2023, with the primary motivation to have been flagged for expansion by address disease issues. approximately 625 hectares net.

Expected net change of vineyard size before 2023, and from 2023 to 2028

Less 1-25 ha

Plus 1-25 ha

Plus 26- ha

Plus 51-75 ha

Plus 76-100 ha

Plus at least 150 ha

-200 -100 0 100 200 300 400 500 600 700

Before 2023 2023-2028

We asked wine businesses to what extent they expect their vineyard to increase or decrease in size, in net hectares. South Australian wine industry – October 2019

A focus on water

Variable weather conditions have taken Annual water demand before 2023 Projected water demand 2023 to their toll on many South Australian wine 2028 Two thirds (66%) of respondents expect businesses over the past 12 months, to use relatively low levels of water Longer term water usage projections as hot and dry conditions have seen (less than 2.5 ML/ha) to irrigate their were provided for the 35 vineyards for wine grape yields reduce by up to half vineyards through to 2023. the years 2023 to 2028. in some regions. One quarter (25%) of respondents plan Overall, wine businesses expect to use Following a drier than average winter to use slightly more water (2.5 to 3.0 the same water consumption into the and early spring for much of eastern ML/ha) each year for the next five years. longer term, despite a net increase in and southern Australia, the Bureau of productive land area. Meteorology forecasts below average Larger wine businesses in the Riverland rainfall across most of Australia for the and Adelaide Hills expect to use larger No change in water consumption is remainder of 2019 and early 2020. volumes of water (more than 4.0 ML/ha) expected for 83% of vineyards. per vineyard through to 2023. Respondents graciously shared details of their intended water usage for 35 vineyards over the next ten years. We note that the sample sizes are small, so the results are indicative only.

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

The Peninsulas The Peninsulas

Mount Benson Mount Benson

Clare Valley Clare Valley

Riverland Riverland

Eden Valley Eden Valley

Coonawarra Coonawarra

Langhorne Creek Langhorne Creek

Adelaide Hills Adelaide Hills

Barossa Valley Barossa Valley

McLaren Vale McLaren Vale

0 2 4 6 0 2 4 6

Less than 2.50 ML/ha Decrease 2.50 to 2.75 ML/ha Stay the same 2.76 to 3.00 ML/ha Increase More than 4.0 ML/ha

15

Water source Respondents indicated a strong reliance on bores and groundwater. As we move towards a hotter and Over the coming decade (and consistent with last year’s results), drier climate, increased water projections indicated that many access, efficiency and security will vineyards (40%), across six regions, will be of increasing importance. draw irrigation water from bores and groundwater. Rivers and creeks are relied upon as the primary source of water by 17% of vineyards. While 23% 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

The Peninsulas

Mount Benson Clare Valley Riverland

Eden Valley

Coonawarra

Langhorne Creek

Adelaide Hills Barossa Valley McLaren Vale

0 2 4 6

Bores and groundwater On property dams Mains Rivers and creeks Other South Australian wine industry – October 2019 snapshot

Looking to the future

Key success factors Key barriers Professional development We asked participants to identify the The weather has had an impact To help ensure our continued design key factors that will underpin their this year, with over half (51%) of the of meaningful training and professional success over the coming two years. participating wine businesses identifying development programs for wine Responses were varied, however, like lack of access to water as a leading businesses, we asked participants to last year, sales growth rated as the barrier to their success. nominate subjects of interest. most important success factor. Continued demand for South Australian There is significant demand for New or export markets (including wine is equally recognised as a top marketing and business management China and the United States), and barrier by 51% of the respondents. To education. good financial management (including help overcome this barrier, consider Over 40% of participants expressed an cash flow and cost management, and strengthening strong connections interest to learn about client relationship building profitability) ranked as the equal with markets, gathering feedback and management, including systems, second most important factors. innovating to remain competitive. processes and easy wins. Social media The importance of a successful vintage was also a key subject of interest, as in 2020 was recognised as the fourth was strategy development. most important success factor.

Top ten success factors Barriers to success Professional development needs

Client relationship mgt Social media Strategy development Marketing channels success key Business plan factors barriers Evolution/succession Marketing plan Work health and safety Leadership Financial literacy Liquor licensing Efficient production Changes in demand for Sales growth Profitability South Australian wine Business continuity plan Contracting New/export markets A successful vintage Lack of access to water Using your accountant Economic conditions Water accessibility/ Lack of capital security Managing risk Quality of product Regulatory change Cellar door Industrial relations Competition from Soil quality Outsourcing major retailers Internal efficiency Other: Weather events 0% 20% 40% Respondents were able to select more than one option. 17

Conclusion

While free trade agreements and some next year’s study. Marketing and business planning have other trading conditions have continued been highlighted as key subjects for Water access and security continues to create opportunities for South professional development - and will to be a key issue for wine businesses Australian wine businesses, not all are be key skills to embrace to remain to manage. No change to water proceeding to trade with confidence. competitive in our evolving market. consumption is anticipated for the Business confidence has declined this next five years despite plans to grow It is an exciting time for the South year compared to last, with changing vineyard size, which suggests more Australian wine industry - one consumer demand and lack of access efficient use of water is projected. which demands innovation, market to water recognised among the key understanding, and improved practices Profitability remains a key concern for barriers to success, in what is a volatile to remain competitive. wine businesses. While most wine market. businesses do not anticipate any We thank all wine businesses for Variable weather conditions and change to staff numbers over the participating in this snapshot, and we unpredictable rainfall continue to year ahead, many are exploring new encourage your continued support as challenge the industry with more impact technologies to help achieve improved we endeavour to inform, celebrate and felt this year compared to the past two efficiency. strengthen the wine industry of South years, warranting further investigation in Australia.

Compared to last year, how has your business confidence changed?

2018 2019

Increased

Decreased

Stayed the same

0%0% 20%20% 40%40% 60% South Australian wine industry – October 2019 snapshot

Government support, incentives, and key legislation

R&D tax incentive Wine equalisation tax (WET) activities. In practical terms, this primary duty represents an obligation to The Research and Development In 2017, integrity measures were eliminate or minimise potential harm or (R&D) Tax Incentive is a market-driven introduced for the producer rebate loss (risk) by doing all that is reasonably program, which encourages Australian (effective 2019 onwards). The practicable to ensure safety. businesses to invest in innovation. changes have had interesting impacts, The incentive takes the form of either particularly on existing contracts and For more information, contact SAWIA or a potentially sizeable tax refund or a transactions. go to: www.winesa.asn.au considerable tax reduction. Tax reform in the wine sector is likely to Single touch payroll For more information, contact Bentleys continue with a number of proposals Single touch payroll is a reporting or go to: www.bentleys.com.au currently in place for change. It is requirement for employers which therefore important that you work with Mandatory data breach laws came into effect from 1 July 2018 for industry bodies and your advisors to employers with 20 or more staff, and on In February 2018, new laws were have your say and to stay up-to-date. 1 July 2019 for employers with fewer activated as part of an amendment to Labour hire licensing laws staff. Employers are now required to the Privacy Act to require Australian report payments, such as salaries and entities, with an annual turnover of The South Australian Labour Hire wages, directly to the ATO. more than AU $3 million, to adequately Licensing Act 2017 came into effect protect any personal information they on 1 March 2018, requiring providers For more information, contact Bentleys hold. Should a data breach occur, of “labour hire services” to be licensed, or go to: www.bentleys.com.au/ the entity is responsible for assessing with the requirement to hold a licence knowledge-centre/stp/ the risk of harm to individuals and effective from 1 November 2019. Small business CGT concessions mandatory reporting of breaches. For more information, go to: Serious breaches may incur significant Small businesses may be eligible for a www.winesa.asn.au financial penalties. range of capital gains tax concessions Chain of responsibility obligations on assets used to conduct business. For more information, go to: www.oaic. gov.au/agencies-and-organisations/ On 1 October 2018, the Heavy Vehicle For more information, contact Bentleys guides/ National Law was amended to provide or go to: www.ato.gov.au/Business/ that every party in the heavy vehicle Small-business-entity-concessions/ Liquor licensing laws transport supply chain has a duty to Concessions/CGT-concessions/ The reforms of the South Australian ensure the safety of their transport liquor licensing law have been progressively implemented since December 2017. The final stage of the reform, including new licence categories, are being implemented in November 2019 and July 2020 respectively. Whilst some of the reforms implemented to date have resulted in red-tape reduction and greater flexibility, the new fee structure will result in substantial cost increases to the wine industry. For more information, contact SAWIA or go to: www.winesa.asn.au 19

Support for wine businesses

Bentleys SA is a full service advisory The South Australian Wine Industry and accounting firm. We help enterprises Association, is the peak body for wine achieve their objectives and get where businesses in South Australia. they want to be. Our expanding range We provide a broad range of services of advisory, accounting and audit for our members to support the services includes strategic business success and performance of their advisory services, R&D tax incentives, businesses. wealth management, specialist taxation, corporate recovery, and banking and Our services cover industrial relations, finance. employee relations and human resources, work health and safety, We can help you achieve your environment, market development and aspirations. Contact us for a agribusiness growth. no-obligation consultation. 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 5, 63 Pirie 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

A member of Bentleys, a network of independent advisory and 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 Allinial Global – an association of independent accounting and consulting 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