Further tax relief for Australian brewers and distillers

Australian Treasury

The Morrison Government has now put in place the necessary regulations that will ensure Australia’s brewers and distillers can receive additional tax relief from 1 July 2021.

Under changes announced in the 2021‑22 Budget, the Excise remission scheme for alcohol manufacturers will provide brewers and distillers a full remission of any excise they pay, up to an annual cap of $350,000.

Assistant Treasurer Michael Sukkar said that the changes will provide further tax relief for small businesses such as brewers and distillers.

“By continuing to reduce the tax burden on this growing sector, we are supporting small businesses right across the country,” Minister Sukkar said.

“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.”

The 2021-22 Budget measure builds on and complements the Government’s 2020‑21 MYEFO announcement to allow eligible alcohol manufacturers to receive their excise duty remission automatically, thereby reducing administrative overheads and providing additional assistance by addressing cash flow concerns, which will also commence from 1 July 2021.

These changes will bring the Remission Scheme into alignment with the existing Wine Equalisation Tax (WET) producer rebate for wine producers. This ensures all alcohol manufacturers are placed on an equal footing and provides additional tax relief to Australia’s craft brewing and distilling industries.

The new regulations can be found on the Federal Register of Legislation website, and further information on the measure can be found at the Australian Taxation Office website.

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