Australian winemaker Taylors Wines threatens to move business overseas over tax changes
According to ABC News Australia, the managing director of Taylors Wines in South Australia said the business could shift operations internationally in response to the federal government's proposed tax changes. Industry representatives argue the reform places a disproportionate burden on family-owned firms.
ABC News AustraliaAccording to ABC News Australia, the managing director of Taylors Wines, in South Australia's Clare Valley, said that if the federal government's proposed reform package on capital-gains tax and long-term property valuation is enacted, the business would seriously consider shifting operations internationally. The company said it would be technically harder for its three-generation family structure and long-cycle vineyard investments to integrate with the new tax regime.
Australian Grape and Wine, the industry body, said the reform would disproportionately affect family-owned vineyard assets and could have lasting negative effects on the sector's export capacity. Treasury sources said exemption mechanisms to protect small and family-owned firms are being assessed and that the final text will be clarified after stakeholder consultations.
The Government of South Australia stressed that the export-oriented wine industry contributes about A$2.4 billion annually to the state and that employment capacity must be safeguarded. Formal consultations with sector stakeholders are to be held over the next three months. This article relays publicly available reporting; it does not constitute tax or investment advice.
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