With around 600 brewers and 400 distillers across Australia, and up to two-thirds of those numbers operating in rural and regional areas, the alcohol industry has become one of Australia’s fastest-growing sectors. As a part of the 2021-22 Budget announcements in May, small breweries and distillers were to be the beneficiaries of $225 million in tax relief to support more jobs and investment.
The excise relief cap for small brewers and distillers (the mechanism by which beer and spirit productions is taxed) will be more than tripled, from $100,000 to $350,000 per year. From 1 July 2021, eligible brewers and distillers have been able to receive a full remission of any excise that they pay, up to an annual cap of $350,000. Previously, eligible brewers and distillers were entitled to a refund of 60% of the excise that they paid, up to an annual cap of $100,000.
Beer and spirits producers in Australia faced a tough tax regime, but the excise cut may put them at more of an even keel with the wine industry. The tax relief is projected to be of assistance in keeping these smaller businesses up and running while remaining profitable during the prolonged impact of COVID-19.
Are you a local brewery looking for more information about tax relief that you may be eligible for? You can come speak with us to find out more information and advice on the subject.