Who pays the contribution if grapes are sold to someone other than a winemaker?

If grapes are traded through a grape trader, the grape grower contributions must be paid on behalf of the grower by the winemaker.

Example 1.  X Grower sells to Y Winery ‘the winemaker’.  Y owns the grapes on delivery.

• Grower contribution:  Y deducts the Grower payment and forwards it to PIRSA.
• Winery contribution: Y forwards its own winemaker contribution direct to PIRSA.
  

Example 2.  X Grower supplies to Y (a grape trader) who delivers to Z Winery, ‘the winemaker’.  Z owns the grapes on delivery - it is the ‘winemaker’.

• Grower contribution:. Z will pay Y less the grape grower contribution. Y will pay X less the same grape grower contribution. Z will forward the grape grower contribution to PIRSA.
• Winery Contribution: Z forwards its own winemaker contribution to PIRSA.

If wine is contract made, who is responsible for paying the contributions?

Contributions into the Fund are paid on grapes ‘grown by a winemaker’ and ‘grown by a person other than a winemaker’ (eg a grape grower). A ‘winemaker’ is defined as a person who carries on a business of making wine and who processes grapes for that purpose.

A grape grower who retains ownership of grapes after delivery to a winemaker for processing and who retains ownership of the resultant wine (ie the grape grower outsources the winemaking) is deemed to be carrying on a business of making wine and is therefore considered to be a ‘winemaker’. The grape grower pays the winemaker contribution (only) and submits a contribution form to PIRSA.

With contract processing, it is recommended the contract processor should make clear the grower is responsible for paying the winemaker contribution and submitting a contribution form to PIRSA.

Note: the SA Grape Growers Industry Fund specifies contributions are only payable by persons who grow SA grapes and who are not SA winemakers.

What is payable by a winemaker who makes wine from their own and other persons grapes?

The winemaker is liable to pay:

• the winemaker contribution (where applicable) on grapes purchased from a grower
• the grower/ winemaker contribution for the grapes grown by the winemaker made into wine.
  

Does it matter where the grapes are sold?

No, because the regulations apply to grapes grown in a particular region, regardless of where the grapes are sold. For example, a winemaker in the Barossa who purchases grapes grown in the Riverland is required to pay, collect and forward the Riverland Grower contribution and the Riverland Winemaker contribution.

What if the grapes are sold to a processor outside of South Australia?

The Primary Industry Funding Scheme Act and its regulations only applies to South Australia.

But it is usual for interstate wineries to deduct and send to PIRSA grape grower contributions. This ensures individual grape growers are entitled to receive services supplied by fund bodies.

Interstate wineries that wish to receive benefits for services funded by payment from the fund are required to make contributions.

What is the situation with a very small-scale grower?

The Act does not specify a minimum payment for a Wine Industry Fund. If grapes are grown by someone other than a winemaker, that payment is likely to be calculated and made by the winemaker who will have several grower contributions to pay into the Fund.

Contributions in the SA Grape Growers, Barossa and Clare Valley Wine Industry Funds are all rounded down to the nearest tonne.