Barossa worries on vineyard tax break

Barossa Valley growers fear grape oversupply (ABC News: Gary Rivett)

 Related Story: Vineyards anger over road plan The Barossa Valley wine industry will lobby the Federal Government to stop companies from planting new vines for tax breaks.

Tax incentives for horticultural investments were revoked from July 1, but the decision is under review.

Sam Holmes, from Barossa Grape and Wine, says it will put a submission to a federal inquiry into the tax break, urging the Government to keep it off the table.

He says, with more than 1,000 hectares of new vines planted this year, the industry is at risk of grape oversupply.

"The Barossa Valley and the Barossa region, the majority of grape growers - probably 80 per cent of grape growers are family-run operations and they are small landholdings," he said.

"If the price of grapes drops due to oversupply we could force a lot of families who are fifth- and sixth-generation growers off their properties."