Following representations by Ted O’Brien MP, Member for Fairfax, on behalf of craft brewers and small distillers from the Sunshine Coast, the Federal Government has announced tax breaks for the sector.
From July 1, small brewers and distillers will benefit from $225 million in tax relief to support more jobs and investment as part of the 2021–22 Budget.
“This is no small beer,” Mr O’Brien told the parliament.
“Craft brewers and distillers are not only key employers across regional and rural Australia, they are also a major drawcard for tourists to regions such as the Sunshine Coast.”
There are around 600 brewers and 400 distillers across Australia, with around two thirds operating in rural and regional areas.
The announced changes will allow these brewers and distillers to keep more of what they earn, helping them to invest, grow and support around 15,000 Australians that are currently employed in the sector.
Under the Government’s plan to support jobs in this growing sector, small brewers and distillers will benefit from a tripling of the excise refund cap for small brewers and distillers from $100,000 to $350,000 per year.
Eligible brewers and distillers will be able to receive a full remission of any excise they pay, up to an annual cap of $350,000. Currently, eligible brewers and distillers are entitled to a refund of 60 per cent of the excise they pay, up to an annual cap of $100,000.
This will align the benefit available under the Excise Refund Scheme for brewers and distillers with the Wine Equalisation Tax (WET) Producer Rebate.
“The Sunshine Coast is the home to a vibrant and diverse small brewing and distilling industry, which supports hundreds of jobs, while offering locals and tourists a diverse and delicious variety of products,” Mr O’Brien added.