The Albanese Government has said it will provide an extra $50,000 in tax relief for Australia’s brewers, distillers and wine producers.
This will see the excise remission cap for brewers and distillers increase to $400,000, meaning they will get a full refund of any excise paid up to $400,000 each year. The Government will also increase the Wine Equalisation Tax (WET) producer rebate to $400,000.
The Government said that this adjustment to the tax arrangements will help support local industry plus regional tourism, investment and job creation.
The Prime Minister, Anothony Albanese said: “To build Australia’s future, we need strong small and medium sized businesses generating jobs and economic opportunity for Australians.
“This common sense measure will back thriving local industries and open the way for growth.”
The proposal will apply from 1 July 2026, and the Government said the tax relief is estimated to decrease tax receipts by $70m over five years from 2024-25.
Treasurer Jim Chalmers said: “We’re pleased to have found room in a tight budget to provide some tax relief for a really important industry creating jobs and opportunities around Australia.
“Brewers, distillers and winemakers play a large role in many local economies and this support will help them invest and grow.”
In addition to the tax relief the Australian Trade and Investment Commission (Austrade) will be providing Australian distillers, brewers and wine producers with additional support to help them grow their exports in high priority overseas markets. This was one of the recommendations made in the Australian Food and Beverage Manufacturing report, released by the House Standing Committee on Industry, Science and Resources last week.
Minister for Trade and Tourism Don Farrell said: “Supporting small distillery, brewing and wine businesses is not just about producing exceptional products – it’s about creating jobs, fostering local economies, and building a better Australia.
“By boosting our export support for these businesses, we are helping fast-track their success in international markets which will create even more jobs at home.”
While producer associations have welcomed the tax relief, the Australian Hotels Association said the measure will do little to help those struggling to afford a drink at a pub.