The Australian Distillers Association has welcomed the Government’s $50,000 increase to tax relief, but the Independent Brewers Association (IBA) said it is too little too late, and the Australian Hotels Association (AHA) says the measure will do little for those who are struggling to buy a drink at a pub.
The Albanese Government has said that it is increasing tax relief for Australia’s brewers, distillers and wine producers by $50,000, to $400,000 per year.
Australian Distillers Association Chief Executive Paul McLeay said the benefits will flow to 700 craft distillers throughout the country, half of which are in regional and rural Australia.
“Eighty-eight per cent of Australian distillers are small businesses and today’s announcement means they can continue investing in enhancing production, supporting regional employment and providing unique destinations for tourists,” he said.
“We recognise the additional funding announced today for Austrade to help the industry realise its export potential, but we know that more needs to be done.
“Research shows that with the right settings and support, Australian spirits exports can grow to be worth $1bn in trade value within the decade.
“That’s why we’ve called on the Government to adopt our Spirits Export Accelerator Strategy to provide the necessary infrastructure to upskill distillers and protect the integrity and reputation of Australian spirits in export, ensuring the right checks and balances are in place before product leaves our shores.
“We know that with this support, we can build on the Albanese Government’s objectives of growing domestic manufacturing, diversifying exports and supporting regional communities.
“We look forward to continue working with the Prime Minister and his team to realise this potential.”
In its statement about the Prime Minister’s announcement, the IBA said that while it welcomes any reform to address the “unfair taxation system that is hurting Australian owned brewing businesses”, this tax relief, which won’t kick in until 1 July 2026 is “a cop out”.
The IBA said: “While on the surface this looks to be a generous gesture by the Labor government as they head into an election – unfortunately, the fine print indicates that this change would not apply until 1 July 2026.
“This means our small Australian owned brewery businesses, who already contribute approx. $3.53bn to the nation’s economy annually, need to brace for a further two excise tax increases before this promise is delivered. And the Albanese government must be re-elected first.”
The IBA also highlighted that 40 per cent of the submissions to the report from The House Standing Committee on Industry, Science and Resources Inquiry into food and beverage manufacturing in Australia, were from the alcohol industry with a focus on the rates of taxation and the effects on the industry.
The association said: “Unfortunately, rather than tackling the direct link between the unfair and ever-increasing taxation on small brewing businesses and their ability to invest in productivity and innovation – the Committee concluded that those issues were too difficult and, only weeks before an election, have recommended another inquiry.
“Labor have more than enough evidence from their own inquiries to demonstrate that unless they take immediate action more Australian owned breweries will close and more jobs will be lost.
“Unfortunately, they have decided to continuously kick the can of responsibility down the road.
“Recommending another inquiry and promising a tax break 18 months into the future just before an election is a cop out. The Labor party are still in Government and if they really wanted to – they could show leadership today.
“It’s no surprise then that beer made by an Australian owned brewery is becoming unaffordable and frankly that’s un-Australian.”
AHA National CEO Stephen Ferguson said while brewers, distillers and wine producers will benefit from the tax relief, but it was unlikely little, if any, benefit would flow on to consumers.
“Consumers will still be faced with the Government’s twice-yearly excise increases, with pubs being forced to pass the tax increase on to consumers.”
“The 84th increase is still due on 1 August this year.
“Excise is a lazy, hidden tax and Australians continue to pay the third highest excise in the world.
“Pubs have no control over excise and are stuck in the middle having to pass the tax on to ordinary Australians.
The AHA said it maintains its call to the Labor and Liberal parties to freeze excise for beverages sold in licenced premises such as pubs, clubs, bars and restaurants.