Performance and reporting


Annual Report

The Wine Australia Annual Report 2018-19 (see Archived documents for previous years) details our activities and achievements in supporting a competitive wine sector and delivering on our Strategic Plan 2015–2020, our Annual Operational Plan 2017–18 and our Portfolio Budget Statements 2017–18.

Research and Development Projects

Independent performance review

On 1 December 2018, we submitted a report on an Independent Performance Review conducted by Forest Hill Consulting to the Department of Agriculture and Water Resources, as required by our Funding Agreement with the Commonwealth 

Forest Hill’s high-level findings, as summarised in the executive summary, were: 

The review has found that Wine Australia is a well-managed, high-performing company. There is no evidence of Wine Australia having failed to fulfil, or being at risk of not fulfilling, all of the obligations required by its Funding Agreement with the Commonwealth or the Wine Australia Act. It is generally well regarded by stakeholders, has strong relevant key performance indicators, has met the vast majority of its targets over the period and reports in a meaningful way. Its export assistance and regulatory functions are especially regarded by the sector as are its market insights activities. 

Forest Hill made 11 recommendations, 2 of which were rated important and 9 of which were rated better practice.

Wine Australia strives to continue as a well-managed and high-performing organisation. We look forward to building even deeper engagement with our stakeholders and demonstrating how we deliver value for them by implementing each of the recommendations. The table below shows how we are implementing the recommendations.

 

Recommendation

Priority

Response

Plan for implementation

Timeframe

1. The Wine Australia Board should consider an externally-facilitated Board performance review during the life of each Board, perhaps at the two-year mark.

Better practice

Agree

Wine Australia will commission an externally facilitated Board performance review two years into the Board members’ term.

Under way (due May 2020)

2. The Board of Wine Australia should consider discussing with government the convention by which the appointment of the CEO of Wine Australia is ratified by Cabinet.

Better practice

Agree

On behalf of the Board, the Wine Australia Chair will write to the Minister for Agriculture and Water Resources.

Complete

3. Wine Australia should continue with its current evaluation processes for Priority 2 of the Strategic Plan but also continue to look for additional measures to allow comparison of key practices and costs with competitive countries.

Important

Agree

As part of the current evaluation processes, a review will be conducted measuring adoption rates of the 10 identified grapegrowing and winemaking practices. 

Additional measures will be considered.

Complete

4. Wine Australia should publish quantitative data showing its RD&E investment portfolio balance in each of its AOPs (indicative planned), Annual Reports (actual for the year) and Performance Evaluation Reports.

Better practice

Agree

Quantitative data showing Wine Australia’s RD&E investment portfolio will be included in future AOPs, Annual Reports and Performance Evaluation Reports

Complete (in Annual Operational Plan 2019–20)

5. Wine Australia should review the way it manages extension and adoption of R&D outcomes and consider whether a more structured approach is required.

Better practice

Agree

Wine Australia is conducting a review of extension and adoption.

Under way (due February 2020)

6. Wine Australia should upgrade its evaluation framework, in association with the development of the next Strategic Plan, to provide much more detailed information about how monitoring, evaluation and reporting will be conducted.

Important

Agree

Wine Australia will update the evaluation framework to provide more detailed information about how monitoring, evaluation and reporting will be conducted. This will be done in association with the next Strategic Plan.

Under way (due early 2020)

7. Wine Australia should take the opportunity from the future availability of a levy-payer register to enhance its direct engagement with grapegrowers, and in particular, to continue to build its relationship with inland associations.

Better practice

Agree

Wine Australia has received Ministerial approval to establish a grape and wine sector levy payer register and is working with the Department.

This will be a key support to build relations with all growers.

Separately, senior management continue regular meetings with the inland wine regions.

Complete

 

 

Complete

8. Wine Australia should consider enhancing its performance reporting by developing case studies or other mechanisms for making outcomes more relatable to the average levy payer.

Better practice

Agree

Case studies are being developed as part of the review of adoption rates of the 10 identified grapegrowing and winemaking practices (see Recommendation 3).

Complete

9. Wine Australia should make all documents relevant to performance reporting, including detailed impact assessments, available on its website in a separate, clearly identified ‘Performance Evaluation’ section.

Better practice

Agree

A new section has been added to the Wine Australia website at wineaustralia.com/about-us/performance-and-reporting and the performance and reporting information migrated to it.

Complete

10. Wine Australia should continue to report publicly the benchmarked measures of its marketing and promotion activities against the results from prior years. It should also investigate how measures of marketing and promotion activities can be incorporated into structured impact assessment methodology of RD&E projects for ex-post assessment, either using the existing methodology or investigating development of an economic partial equilibrium model.

Better practice

Agree

Wine Australia will report benchmarked measures of marketing and promotion activities compared with prior years.

Wine Australia will investigate how other organisations incorporate marketing activities into a structured impact assessment method for ex-post assessment.

Complete

(Annual Report 2018–19 and Performance Evaluation Report 2018–19)

Under way (draft report received)

11. Wine Australia should consider broadening its annual stakeholder survey to collect more information on stakeholder perceptions of its performance.

Better practice

Agree

Wine Australia has expanded its annual stakeholder survey to collect more information on stakeholder perceptions of its performance.

When the levy payer register is available, Wine Australia will conduct a stakeholder survey of growers, producers and exporters.

Complete

 

2020

 

Forest Hill Consulting also conducted a mid-term evaluation of the Export and Regional Wine Support Package (ERWSP) managed on behalf of the Australian Government by Wine Australia.

Forest Hill’s high-level findings, as summarised in the executive summary, were:

The ERWSP is very tightly managed by Wine Australia. Strong governance and delivery structures and processes have been established and these appear to be working effectively. Monitoring, evaluation and reporting is comprehensive, and risk is managed systematically.

Performance Evaluation Report

Our Performance Evaluation Report 2018-2019 provides an overview of the value delivered through our investments and activities, as required under our Funding Agreement. Some highlights from our 2018-2019 investments and activities include:

  • The value of Australian wine exports grew to $2.86 billion an increase of 4 per cent over the previous year. There were a record 2729 active exporters (an increase of 15 per cent). The average purchase price for grapes across all varieties was $664 per tonne, the highest since 2008.
  • We hosted 120 marketing campaigns in key markets, and 93 per cent of wineries and distributors who participated and 96 per cent of attendees who participated reported that they were satisfied.
  • After attending events, participant’s perceptions of Australian wine rated, on average, 8.90 out of 10, an increase of 12 per cent on their pre-event ratings.
  • We managed 183 research projects and independent analysis of six randomly selected R&D projects showed aggregated Benefit–Cost Ratios between 1.6 to 5.3.
  • We conducted 191 site inspections to ensure the truth and reputation for truthfulness of Australian wines.

Senate Order for Entity Contracts

1 July 2018 to 30 June 2019

Pursuant to the Senate Order for entity contracts the following table sets out contracts entered into by the Wine Australia which provide for a consideration to the value of $100,000 or more (GST inclusive) and which:

  • a) have not been fully performed as at 30 June 2019, or
  • b) which have been entered into during the 12 months prior to 30 June 2019 

Most of the contracts listed contain confidentiality provisions of a general nature that are designed to protect the confidential information of the parties that may be obtained or generated in carrying out the contract.

The reasons for including such clauses include ordinary commercial prudence that requires protection of commercially sensitive information.

The accountable authority of Wine Australia has assured that the listed contracts do not contain any inappropriate confidentiality provisions.

Download the list of Contracts here

Estimated cost of complying with this Order: $1,000.

Basis of method used to estimate the cost: Hourly rate to complete summary and load to website.

Performance Evaluation Framework

Wine Australia’s Funding Agreement with the Commonwealth of Australia, represented by the Department of Agriculture and Water Resources, requires us to develop a Performance Evaluation Framework that:

  1. supports the program framework
  2. ensures that key performance-related information is generated by the program framework and is routinely collected and monitored
  3. includes a structured plan for the systematic evaluation of the efficiency, effectiveness and impact of Wine Australia's key investments, and 
  4. includes a means of publishing and disseminating relevant research and development outcomes and the outcomes of evaluations undertaken in link with item 3 (above).

Regulator Performance Framework

The Australian Government Regulator Performance Framework (RPF) was developed to ‘encourage regulators to undertake their functions with the minimum impact necessary to achieve regulatory objectives and to effect positive ongoing and lasting cultural change within regulators’.

The Regulator Performance Framework sets out how the we intend to measure and report our performance against the RPF. It contains performance measures against each key indicator as well as the evidence that will be collected to demonstrate performance.

Senior Executive Remuneration

As required by the Australian Government, Wine Australia discloses the remuneration of its Senior Executives. The Remuneration Committee of the Wine Australia Board, which is chaired by the Wine Australia Chair, ensures the appropriate oversight and approval of the remuneration policies and practices. The committee also reviews the remuneration policies and practices to ensure that there is alignment between executive reward and Wine Australia’s performance. 

Wine Australia’s executive remuneration consists solely of fixed annual remuneration. The remuneration of executive personnel is set at the midpoint of the Mercer (Australia) determined benchmark associated with the work value of the role. These benchmarked remuneration ranges are set by Mercer following their independent examination of comparable roles in the Australian employment market. Wine Australia applies these ranges to attract high-quality, high-performance personnel. Fixed remuneration takes into account the size and complexity of the executive’s role and the skills and experience required to succeed in such a position.

The information included in the table below includes detail on the scope and value of remuneration for Wine Australia executive staff. Executive staff are defined to include the Chief Executive Officer and the members of the Senior Leadership Team. These executives have authority and responsibility for planning, directing and controlling the activities of Wine Australia.

Download Table A here.

Key requirements and definitions

Reportable salary is defined as the sum of:

  • gross payments
  • reportable fringe benefits, and
  • reportable employer superannuation contributions as reported in an individual’s payment summary. 

Contributed superannuation is defined as:

  • for individuals who are not in a defined benefit scheme, the defined contribution amounts.
  • for individuals who are in a defined benefit scheme (e.g. PSS and CSS), contributed superannuation includes the Notional Employer Contribution (NECR), Employer Productivity Superannuation Contribution (also known as the Productivity Component) and any Additional Lump Sum Contribution paid.

Reportable allowances equal the total allowances figure as reported in an individual’s payment summary. Reportable allowances exclude any allowances already reported in the gross payments line in the payment summary.

Cost Recovery Implementation Statement

The Public Governance, Performance and Accountability (Charging for Regulatory Activities) Order 2017 (Order) requires Wine Australia to maintain a cost recovery implementation statement (CRIS) relating to its regulatory charging activity.

A copy of Wine Australia’s CRIS is available here.


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