(HospitalityMagazine) - The managing director of De Bortoli, one of Australia’s largest family owned wineries believes the Wine Equalisation Tax (WET) poses a bigger threat to Australia’s wine industry than the high Australian dollar.  

The WET grants small wine producers tax breaks, while medium to large sized wine producers are exempt, which makes it easier for the former survive amidst an uncertain climate. 

Under the scheme, all wine producers can claim as much as $500,000 in rebates, however those that earn more are essentially exempt from the 29 percent tax, reports ABC News.

Darren De Bortoli, managing director, De Bortoli wines said the WET rebate is driving wine prices down.  "It has this compounding affect of driving wine prices lower. As wine prices go lower, the government's tax take on the winery industry drops as well.