Assistant Treasurer Michael Sukkar has confirmed that Australian brewers and distillers will receive a full $350,000 excise rebate from Thursday, 1 July, 2021 announced in the 2021-22 Federal Budget.

Treasurer Josh Frydenberg initially revealed the $225million remission scheme for alcohol manufacturers on 3 May, a week prior to the official release of the budget, and received a welcomed response from industry leaders.

The Treasurer’s announcement was officially confirmed by the Assistant Treasurer on Wednesday, who said: “By continuing to reduce the tax burden on this growing sector, we are supporting small businesses right across the country.

“There are around 600 brewers and 400 distillers in Australia, with the sector employing around 15,000 people. These changes will support the brewing and distilling sector right across the country, creating more jobs and investment.

“As a Government, we are always focused on creating the conditions that allow businesses to grow and succeed.”

In a recent notification to its members, the Australian Distillers Association welcomed the confirmation: “It’s official. We are pleased to advise that the regulations required to enact the changes to the craft distiller rebate from 1 July have now been put in place.”

From 1 July 2021 eligible brewers and distillers will be able to receive a full rebate 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.

The announcement sees brewers and distillers come into line with Australia’s wine producers and the rebate they receive through the Wine Equalisation Tax.

The new scheme aligns with the Government’s 2020-21 Mid-Year Economic and Fiscal Outlook announcement to allow eligible alcohol manufacturers to receive their excise duty rebate automatically, thereby reducing administrative overheads and providing additional assistance by addressing cash flow concerns, which will also start from 1 July 2021.

To be eligible to claim either a refund under the previous refund scheme or apply any automatic rebate under the new scheme, manufacturers will need to pay any excise duty on entered goods for home consumption prior to 1 June 2021. A separate transitional arrangement applies for goods entered in June 2021.

The new regulations and further information can be found at the Federal Register of Legislation and the Australian Taxation Office websites.

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