A Mandatory Code by 2027: The Government Responds on Winegrape Purchases

On 23 April 2026, the Australian Government tabled in the Senate its formal response to the Rural and Regional Affairs and Transport References Committee's (the Committee) report on the Australian winegrape purchases code of conduct, confirming its intention to introduce a mandatory Code of Conduct for Winegrape Purchases (the Mandatory Code) by 1 January 2027. For growers and winemakers who have endured years of market disruption, oversupply and contractual uncertainty, the response marks a decisive shift in approach from the current voluntary regime.

The Mandatory Code

The Australian Government has supported the Committee's primary recommendation that the Treasurer, in consultation with stakeholders and the Australian Competition and Consumer Commission, determine the most appropriate model for a Mandatory Code across Australia's winegrape growing regions, with particular focus on the most impacted inland regions of the Riverland, Riverina and Murray Valley (including Sunraysia).

The Australian Government agreed the Mandatory Code should cover the following requirements:

• it will apply to winemakers whose grape purchases exceed a three-year moving average of 2,000 tonnes per annum;
• require winemakers to make earlier, binding offers for each grape variety they seek under contract from the Riverland, Murray Darling and Swan Hill, and Riverina regions, with those prices to be made public;
• payment terms should also be required to be published, and the Australian Government has indicated that it will monitor payment practices to consider whether further improvements can be made;
• objective standards for grape asessment of maturity, purity, condition and other quality parameters drawn from the existing voluntary code are to be specified by winemakers within their contracts;
• any deductions from the offer price, or adverse decisions such as rejection of grapes, must be clearly communicated to growers before such a decision is made; and
• appropriate dispute resolutions forums will be established, including an anonymous complaints mechanism with protection against retribution.

The Australian Government has committed to working with industry through an established advisory group and will review the Mandatory Code after two years of operation.

Data, Diversification and Market Development

Beyond the headline reform, the Australian Government has supported the Committee's recommendation that Wine Australia continue to facilitate the collection and dissemination of wine and grape data, with the forthcoming National Vineyard Register expected to fill significant gaps in data on Australia's vineyard footprint.

On the issue of surplus wine, the Australian Government has noted, rather than supported, the Committee's recommendation to investigate Government subsidised distillation of the excess alcohol. The Australian Government cited Viticulture and Wine Sector Working Group’s concerns that such a scheme could distort the market and would come at substantial costs to taxpayers as demonstrated in European examples. However, it was considered that the door remains open to targeted research or pilot studies.

The Australian Government also only noted the recommendations concerning grower transition and diversification into other industries and further investment in the Australian wine market, observing that work is already underway in these areas. This includes a project commissioned with Wine Australia and AgriFutures to assist growers in transitioning into other crops and non-traditional revenue streams, alongside market investments such as the $1.9 million provided to Wine Australia under the Long-Term Viability Package to support trade and market development internationally and domestically, including funding for Country Managers in key markets. The Australian Government also noted that it is supporting the Australian wine industry by negotiating favourable technical market access conditions and resolving potential issues to trade, highlighting the recent trade agreements with the United Arab Emirates and India.

Looking Ahead

With the legislative pathway now clearer and a 1 January 2027 deadline ticking down, attention will turn to the consultation process that shapes the Mandatory Code's drafting and to the practical compliance obligations that larger winemakers will need to prepare for in the coming months.

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