Creating a level playing field for small businesses in the wine sector

On 14 March, the Albanese government announced it will extend a crackdown on unfair trading practices to small businesses in its ongoing efforts to address power imbalances between small and large businesses. The government acknowledged the need for targeted protections that safeguard small businesses from unfair trading practices, including those that impact grape growers and wine producers in their dealings with larger commercial entities.

“Small businesses are vital to our economy, and we’re concerned about the disadvantages they face when dealing with unfair practices from larger players that might not breach existing laws but still cause harm,” said Minister for Agriculture, Fisheries and Forestry and Minister for Small Business Julie Collins.

Australian Grape & Wine welcomed the government’s commitment to extending unfair trading practice protections to small businesses, which could help to ensure a more level playing field for businesses across the wine sector. The organisation said it has participated in consultations on these issues and supports measures that improve fairness and transparency in commercial dealings. Its submission to the government’s consultation highlighted the importance of addressing market power imbalances and ensuring small businesses can compete on fair and equitable terms.

“We’ve heard from various sectors including farmers, subcontractors and small online retailers about challenging practices they’ve encountered. That’s why we’re moving forward with plans to extend these important protections,” Collins said.

“This builds on the extensive work our government has already taken to level the playing the field for Australia’s record 2.6 million small businesses.”

Treasury will consult this year on the design of protections for businesses, including on whether a principles‑based prohibition should apply and whether specific unfair trading practices should be targeted to protect small businesses.

This will complement a statutory review of the amendments to strengthen unfair contract term protections that the Albanese government legislated in 2022.

“This is an important step towards ensuring that small businesses across our sector, including grape growers and winemakers, are afforded the protections they need to operate fairly and competitively in the marketplace,” said Australian Grape & Wine CEO Lee McLean. “We have long advocated for a more level playing field, and this commitment from the Albanese government is a positive move in the right direction.

“The nuances of the wine sector must be well understood in this process. While we strongly support measures to prevent unfair trading practices, it is crucial that any new framework is tailored to the realities of our industry. We will engage constructively to ensure the final protections strike the right balance between fairness, competition and commercial flexibility.”

Australian Grape & Wine said it looks forward to working closely with the government and industry stakeholders to develop a framework that upholds fairness, promotes competition and fosters a sustainable wine sector.

Image credit: iStock.com/Miljan Živković