South Australian wine businesses are expressing concerns about the financial and administrative challenges posed by the upcoming expansion of Container Deposit Schemes. These schemes, which allow consumers to receive cash back for returning bottles, are set to include wine and spirit bottles up to three liters by mid to late 2027 in South Australia and New South Wales. Industry representatives argue that the costs associated with compliance outweigh the environmental benefits. A recent report on Queensland's recycling scheme, which added wine and spirit bottles in 2023, highlighted governance issues and raised alarms about the negative impact on small producers. Western Australia plans to expand its scheme in July 2026, while the Northern Territory government is set to implement changes by August 2027, including a two-year transition period. The new regulations will also encompass larger drink containers, such as those for cordial, juice concentrates, and flavored milk. Many wineries in Australia are small-scale operations. For instance, 919 Wines in South Australia’s Riverland is run by a husband-and-wife team, Jenny and Eric Semmler. Ms. Semmler noted that the recycling schemes impose significant financial burdens on family businesses. "Every bottle we have to pay 13 cents for, while the consumer gets back 10 cents," she said. The administrative demands of multiple state-based schemes are also a concern. "The requirements for reporting are fairly onerous," Ms. Semmler added. She fears that many small producers may struggle with compliance, especially since many do not have barcodes, which are mandatory for participation in the scheme. Paul Zerella, managing director of Project Wine, which assists wineries with compliance, echoed these sentiments. "Anybody who sells even one bottle in Queensland, as I understand it, needs to fill in the stat dec [statutory declaration]," he said. He described the additional paperwork as excessive for minimal return. Zerella suggested that introducing administrative support and a cost-free threshold could alleviate some of the burdens on smaller operators. He pointed to Tasmania's system, where businesses selling fewer than 20,000 units annually are exempt from fees but still required to complete paperwork. Inca Lee, chief executive of the South Australian Wine Industry Association (SAWIA), stated that discussions with the government are still in the early stages. "They [governments] have expressed the intention to have a national portal to register products, but they haven't extended that to reporting requirements and also payment requirements on winemakers," she said. Lee warned that the expanded scheme could cost South Australian winemakers up to $40 million annually. She noted that some smaller producers have opted not to ship wine to Queensland due to the financial strain. In response to these concerns, Environment Minister Lucy Hood stated that the Environmental Protection Authority is exploring measures to support smaller producers, including the development of a national portal and reduced reporting requirements.