The Australian government has bowed to drinks industry pressure by announcing tax relief for the country’s distillers, brewers and wine producers.
In a statement announcing the move on Saturday (22 February), Prime Minister Anthony Albanese said: “This common sense measure will back thriving local industries and open the way for growth.”
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Currently, brewers and distillers get a full refund of any excise paid up to A$350,000 ($222,835) each year. The government will increase the excise remission cap to A$400,000 for all eligible alcohol manufacturers. It will also increase the Wine Equalisation Tax (WET) producer rebate to A$400,000.
The measures will come into effect from 1 July 2026.
In addition to the tax relief, the Australian Trade and Investment Commission (Austrade) will provide 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-sized exporters tap into fast-growing markets, including in south-east Asia.
The tax relief is estimated to decrease tax receipts by A$70m over five years from the 2024-25 financial year.
Australia’s Treasurer Jim Chalmers said: “We’re pleased to have found room in a tight budget to provide some tax relief for a really important industry creating jobs and opportunities around Australia.
“Brewers, distillers and winemakers play a large role in many local economies and this support will help them invest and grow.”
The move follows lobbying from the local drinks industry. Last August, distillers and brewers called for action following the introduction of a new increase in alcohol duty rates.
Responding to the government’s tax-relief announcement at the weekend,
Kristy Lark-Booth, president of the Tasmanian Whisky and Spirits Association and founder of Killara Distillery, said the additional relief comes at a time when it is needed most by Tasmania’s 77 distilleries.
“Fifty thousand dollars will provide much-needed headroom for Tasmanian whisky and spirits producers to continue investing in their businesses and laying down barrels to support the growth of the industry, both at home and abroad,” she said.
“We know that Tasmania produces some of the world’s most distinctive spirits, and there is huge scope to create a thriving export industry to rival the likes of more established distilling industries in Japan, Ireland and the US.”
Australian Distillers Association chief executive Paul McLeay added: “Eighty-eight per cent of Australian distillers are small businesses and today’s announcement means they can continue investing in enhancing production, supporting regional employment and providing unique destinations for tourists.”
However, he has called for further measures to be taken to help the industry grow.
“Research shows that with the right settings and support, Australian spirits exports can grow to be worth A$1bn in trade value within the decade,” he said.
“That’s why we’ve called on the government to adopt our Spirits Export Accelerator Strategy to provide the necessary infrastructure to upskill distillers and protect the integrity and reputation of Australian spirits in export, ensuring the right checks and balances are in place before product leaves our shores.”
