Small brewers and distillers will benefit from $255m in tax relief to support more jobs and investment as part of the 2021-22 Budget.
Member for Barker Tony Pasin said under the plan to support jobs in this growing sector, small brewers and distillers would 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 July 1 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% 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. Ian Mulligan of St Mary’s Spirits in Penola said he was pleased to hear about the Excise Tax rebate change last week.
“This development means that we will be able to plan future expansion of our family’s business with greater confidence,” he said. “With the increasing production and work load we have experienced in recent times, the change to the Excise taxation structure will allow us to look into hiring staff from the local community to help with workload and increase our production to meet the rising demand.”
There are around 600 brewers and 400 distillers across Australia, with around two-thirds operating in rural and regional areas.