The Australian wine industry has welcomed the news that the Federal Government has rejected one of the recommendations of the Henry tax review, that considered the way wine is taxed. The review suggested a move toward volumetric tax, which would have dropped the price of expensive wine, but dramatically increased the cost of cheaper wine.Wine industry groups modelled the cost changes and found that the cost of a $12 four litre cask of wine would have risen to $37, and many were worried about how many consumers would be willing to pay those prices.