The Federal Government has announced its plan to provide tax relief for Australia’s distillers, brewers and wine producers.
Currently, brewers and distillers receive a full refund of any excise paid up to $350,000 each year. The Government has said it will increase the excise remission cap to $400,000 for all eligible alcohol manufacturers, and will also increase the Wine Equalisation Tax (WET) producer rebate to $400,000.
There are around 1,500 brewers and distillers and 3,000 wine producers who currently access these tax incentives.
Prime Minister Anthony Albanese said that adjusting the taxation arrangements will back important local industries.
“This common sense measure will back thriving local industries and open the way for growth,” said the Prime Minister.
The tax relief is estimated to decrease tax receipts by $70 million over five years from 2024-25.
The proposal will apply from 1 July 2026.
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 support includes the opportunity to join in trade missions, expert advice and connections to help small and medium size exporters tap into fast growing markets, including in Southeast Asia and beyond.
“To build Australia’s future, we need strong small and medium sized businesses generating jobs and economic opportunity for Australians,” said PM Albanese.
Treasurer Jim Chalmers said that the government was pleased to have “found room in a tight budget” for these industries.
“Brewers, distillers and winemakers play a large role in many local economies and this support will help them invest and grow,” said the Treasurer.
Minister for Trade and Tourism Don Farrell added that the support for the export market would be a welcome boost for businesses.
“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.”
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