(ABC) - The Australian Winemakers Federation says, reforming the Wine Equalisation Tax rebate, will help the industry recover from a serious downturn.

CEO of the Federation Paul Evans, says the industry needs to rally its resources, to capitalise on any emerging recovery in the wine industry.

The association is calling on the Federal Government to help the industry fund such a campaign, by reforming wine industry taxes, both in Australia and New Zealand.

"The industry is in a position where it needs to proactively work towards recovery, rather than waiting for market conditions to turn in it's favour," says Mr Evans.

Paul Evans says the Government needs to review the WET rebate which he argues is worth $25 million to New Zealand wineries.

"Our view is that there isn't enough resources funding wise, within the industry, to do the marketing job that's required, to give us the profile and do the programs we require, in our key overseas markets.

"Just at the very time when we need those marketing dollars spent the most, is unfortunately, the very time when industry resources are at the lowest ebb."

Paul Evans says the WET rebate paid to New Zealand, should be used to supplement Wine Australia's funding, to market Australian wines in overseas markets.

"The original intent of the rebate, was to help Australian small and medium sized wineries, to cope with difficult trading conditions and therefore to support the regional communities they were based in.

"It was extended to New Zealand in 2006, we believe, as part of the discussion on Closer Economic Relations arrangements with New Zealand.

"Having New Zealand wineries rebated, to come in and sell their product in direct competition with those very wineries that were supposed to be supported by the rebate, is completely at odds with that policy intent.

"It's having a perverse outcome."