Australia Opens Consultation on Mandatory Winegrape Purchasing Code

Australia on Friday opened public consultation on a draft mandatory code that would govern winegrape purchases, a regulatory step the government says is meant to bring clearer rules and more transparency to a sector under pressure from weak market conditions.

The proposed Winegrape Purchases Code of Conduct is scheduled to take effect on January 1, 2027. According to a joint statement from Agriculture Minister Julie Collins and Assistant Minister for Productivity, Competition, Charities and Treasury Andrew Leigh, the code is intended to regulate dealings between winegrape growers and large winemakers and to make those dealings fairer and more consistent.

The government said the draft code would require parties covered by the rules to act in good faith. It would also set expectations around fair and reasonable conduct, improve transparency in transactions, and provide more certainty on issues that have long been sensitive in commercial negotiations, including price deductions and dispute resolution. The draft is also designed to give growers access to financial information that could help them make business decisions.

Consultation on the exposure draft is open until Friday, October 9, 2026. The government is asking growers, winemakers and other industry participants to comment before the rules are finalized.

The move follows recommendations from an independent review of the wine and grape sector led by Dr. Craig Emerson. The government said putting an enforceable code in place is part of its response to that review and part of a broader effort to support an industry dealing with global oversupply of wine and lower consumption rates.

Those market conditions have weighed heavily on producers in recent years. In that context, the proposed code has broader importance for the beverage industry because it could shift the balance in contract negotiations between grape growers and major wine producers at a time when excess supply has put margins under strain. Clearer rules on deductions, access to financial information and formal dispute processes could affect how risk and pricing pressure are shared across the supply chain, from vineyard businesses to wine companies that sell into domestic and export markets.

Collins said the government wants a code that is practical and balanced while supporting the long-term future of the wine and grape sector. She said the rules would require large operators to deal with suppliers in good faith and help give both growers and winemakers more confidence in their transactions. She also said industry participants had called for fairer and more transparent trading arrangements and encouraged them to comment on the draft.

Leigh said the code would create clearer ground rules for doing business across the wine sector. He said that could reduce commercial friction, support investment and improve productivity.

The government framed the measure as part of a wider support package for the industry. It said that since taking office it has provided more than A$105 million in funding to support the grape and wine sector and has permanently increased the Wine Equalisation Tax rebate. The statement did not break down the spending in the release, but it linked that support to the sector’s economic importance.

According to the government, grape growing, winemaking and wine tourism contribute A$51.3 billion to Australia’s economy each year. That figure helps explain why Canberra is moving toward a mandatory framework rather than relying only on voluntary industry arrangements. For growers, the issue is especially important because pricing terms and deductions can have a direct effect on cash flow and planting decisions. For larger winemakers, the code could mean more formal compliance obligations and less flexibility in some purchasing arrangements.

The announcement does not by itself finalize the rules. The exposure draft still has to go through consultation, and the final version could change before the planned start date. But the timetable set out by the government suggests that officials want the framework in place quickly as the sector continues to adjust to oversupply, softer demand and the financial pressure those trends have created.

If adopted largely as proposed, the code would mark a significant regulatory change for one of Australia’s most important beverage industries. It would place legally enforceable standards around commercial relationships that have often been shaped by unequal bargaining power, especially between small and medium-size growers and major buyers. That could give growers stronger footing in negotiations while also forcing more standardized purchasing practices across the market.

The consultation materials are being made available through the Department of Agriculture, Fisheries and Forestry as the government seeks feedback from across the industry before moving to implementation next year.