Small brewers and distillers will benefit from $255 million in tax relief to support more jobs and investment as part of the 2021-22 Budget.
Member for Barker, Tony Pasin, said under our 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.
“It’s pleasing we can deliver this tax relief to assist local manufacturing businesses to grow, create jobs and support Australia’s economic recovery.” Mr Pasin said.
From 1 July 2021 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.
Barossa Distilling Co Managing Director, Neil Bullock, said through this Excise refund it is outstanding to see the Federal Governments recognition of the contribution Distillers and Brewers can make to the Australian economy, particularly in regional areas where many of us are based, bringing us more into line with the Wine industry.
“These changes to Excise will enable re-investment into the business, accelerating growth and creating new jobs.” Mr Bullock said.
“There will be many Distillers out there stretched thin and wearing quite a few hats; Distiller, Sales, Marketing, Cleaner and Bottle Washer, this significant boost in tax refunds enables us to build out our teams, we can hire in skills and experience in the areas that need it.” Mr Bullock said.
“Those additional resources will in turn be a major catalyst to increased revenue in domestic and export markets and overall business and industry growth.” Mr Bullock said.
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.
This announcement builds on the Morrison Government’s track record of supporting small brewers and distillers including by enabling them to automatically receive excise duty remissions when they lodge excise returns; providing them with record investment incentives; and fast tracking the reduction in the small company tax rate to 25 per cent by 1 July 2021.