Over 240 Australian Distillers have invested in building their skills and knowledge by completing the Australian Distillers Association's "Introduction to Distillery Safety Courses" over the past few months.

With over 17 courses across the country and much more planned we encourage you to visit our events and distillery safety course pages on our website to register for the next course in your area. 

Designed to provide essential safety training for individuals working in an Australian distillery, covering key safety requirements and responsibilities. It emphasises the importance of adhering to safety protocols and highlights the potential consequences of non-compliance.

Learning outcomes include:

This one day, in person course is for Australian distillers or those aspiring to work in an Australian distillery. 

The Australian Distillers Association appeared before the Inquiry Into Food and Beverage Manufacturing in Canberra and made our case to freeze the current excise rate, establish a Spirits Australia body and more.

The Commonwealth House Standing Committee on Industry, Science & Resources is currently conducting a Parliamentary Inquiry which is investigating the opportunities for expanding innovation and value-adding in the food and beverage manufacturing industry in Australia.

The Inquiry has visited Archie Rose and Hickson House Distilleries. The inquiry conducted hearings in Sydney and received evidence from Archie rose and Hickson House. They appeared with Diageo.

The inquiry also conducted hearings in Canberra to hear from the peak bodies, Australian distillers Association and Spirits & Cocktails Australia. Holly Klintworth and David Vitale represented ADA and were supported by the Chief Executive.

The Committee will also be visiting our members, Lark in Hobart and Starward Melbourne.

Major Themes for Food and Beverage Manufacturing in Australia

Below is a summary of the submission made by the Australian Distillers Association.

1 Review of Excise

We supported the strong calls for excise reforms made by previous witnesses from Spirits and Cocktails Australia, as well as those made by Hickson House, Archie Rose and Diageo in the previous Hearings. In fact, we noted the committee has nearly 50 submissions to this inquiry that call on the urgent need for excise reform in some form or another.

Freeze for two years to provide certainty for investment, allow for reinvestment and create jobs – particularly in regional areas.

Use the two-year freeze to conduct a comprehensive review of excise. Current policy settings were put in place 40 years ago and are no longer fit for purpose. There were two. Australian distilleries that are in operation when the tax regime was put in place – there are now 700 and the settings are not fit for purpose.

We also called for an urgent review of the Remission scheme. This has been in place for nearly 3 years, and as you can see from the submission from Medium sized producers, there are serious implications of the “one size fits all” approach that has significant consequences for a growing industry and acts as a handbrake to growth.

We call on the government to sit down with industry to review the operations to ensure they align with stated public policy outcomes.

2 Strong and sustainable growth to add value to the economy

Like wine, Australian spirits come from the soil. We use Australian grains, grapes and sugar to produce our product. These are enhanced with Australian botanicals and casks to produce a uniquely Australian product. The value add in our industry through the manufacturing process is significant, and arguably, more dramatic than any other industry.

David Vitale from Starward turns $300 per tonne of barley into $40,000 of whisky

Holly Klintworth from Bass & Flinders turns $16K worth of wine into over $1.6 million worth of brandy

You heard from Will Edwards at the Sydney hearings that their partnership with Voyager, they innovated to create Australia's first commercially available native timber-smoked malt, eliminating the need to import thousands of tonnes of peated malt from the UK, and creating a highly value-added Australian grown and made product able to be sold for an approximately 400 per cent premium to the feed barley farmers in the region we previously relied on.

Therefore, we ask the committee to consider:

This can be further supported with:

3 Future workforce and skill needs

Term of reference 6

Expand the opportunities and reach of the National distillers Institute for industry specific training – because there is a distinct lack of industry specific training (rec 22)

Safety courses should be mandatory for new and renewals of licenses (rec 23)

Industry accelerator program (rec 25)

4 Support further innovation and sustainable growth in the sector

Term of reference 7

Freeze the excise to encourage reinvestment (rec 28)

Create a body called Spirits Australia dedicated to promoting Australian spirits, including through marketing, improving regulation, and supporting innovation.

Responsibilities for Spirits Australia could include:

As allowed for in the new Constitution and voted for by members, the Australian Distillers Association now has new membership levels.

We invite all members to check their membership level in their record card – ‘profile’, by logging into the member management system via the website. If you feel your membership level should be changed, please contact Michael to advise. Automated renewals will be sent out, and will be amended where required if the membership level needs to be adjusted.

For further details and information on the membership levels, please review the ‘membership categories’ page on the website.

If you are new to the industry, and you are a distiller or intending to be a distiller and are in the process of establishing your business and have sold less than 1,000 bottles, you are eligible to join as an Establishing Member. The fee is only $250 per year and gives you access to all of the resources including safety, training discounts, compliance and members portal. This level of membership does not allow you to vote in any meetings as you are not a commercial distiller.

The three main FULL membership levels are

Small producer: any producer who is an existing voting member of the Association or is in production and the production that enters the home market is below the Alcohol Manufacturers Remission, which is $350,000 at time of establishment.

Medium Producer: any producer who produces volume to exceed the automatic remission at any time in the current financial year or is projected to exceed the automatic remission at any time in the year.

Large producer: any commercial producer that exceeds 50,000 LALs of production in any 12-month period.

We also have two categories of membership to support and engage our valuable industry and trade suppliers. They are:

Industry and Trade: this category of membership is for related supply chain who are in an aligned industry and share our philosophies and values. (Non-Voting)

Commercial Partners: Industry partners that have demonstrated a commitment to the industry that is recognised as a strategic relationship. (Non-Voting)

Congratulations to the new leadership team of the Australian Distillers Association. The executive have been elected until the first board meeting after the next Annual general Meeting.

Board Members

The Executive are supported by a new board. Board positions are representative from each of the six Divisions and they will hold office for a two year period, with half board elections held annually. As a transitional arrangement, half of the board will be elected only until the next AGM. The new board, in addition to the office holders above, are:

On Monday 27th May 2024 the Australian Distillers Association AGM was held. Prior to the meeting the new Australian Distillers Association Constitution had been widely canvassed with Members with recommendations.

The Board of the Australian Distillers Association recommends to Members to vote in Favour to the following resolutions that give the new Company effect.

Special Resolution 1 

“This duly constituted General meeting of the Australian Distillers’ Association Inc:

Further, we give notice of the following transitional arrangements.

The Board of the Australian Distillers Association recommends to Members that from today’s date, the following provisions come into effect.

Special Resolution 2

“In accordance with clause 22 of the Constitution:

1. There will be the following classes of Voting Members of the Company:

a. Small producer: any producer who is an existing voting member of the Association or is in production and the production that enters the home market is below the Alcohol Manufacturers Remission, which is $350,000 at time of establishment.

b. Medium Producer: any producer who produces volume to exceed the automatic remission at any time in the current financial year or is projected to exceed the automatic remission at any time in the year.

c. Large producer: any commercial producer that exceeds 50,000 LALs of production in any 12-month period

NB Once your sales result in you moving up to a higher membership class, you maintain that level of membership unless the Board approves otherwise.

2. There will be the following classes of Non Voting members

a. Establishing: this is for members who have begun the distilling journey, are in the process of establishing their business and have sold less than 1,000 bottles. You are required to advise the Company once more than 1,000 bottles have entered the home market. There is a maximum of two years you can be in this category of membership, at that time, you automatically become a small producer, subject to meeting eligibility requirements, even if you have not sold any product, or your membership lapses. You can reapply for membership.

b. Industry and Trade: this category of membership is for related supply chain who are in an aligned industry and share our philosophies and values.

c. Commercial Partners: Industry partners that have demonstrated a commitment to the industry that is recognised as a strategic relationship.

3. If you are eligible to be a Voting member, you are not entitled to be a Non voting Member.

In accordance with clause 16 of the Constitution:

4. At time of establishment the following fees are set as follows (plus GST)

a. Small Producer: $750

b. Medium Producer: $1,000

c. Large Producer: $2,000

d. Establishing: $250

e. Industry and Trade: $750

f. Commercial Partners: by negotiation

5. Transition arrangements allow for existing members to have the new rates at the time their membership renewal falls due. For new and lapsed Members, the new fee structure takes immediate effect.

6. In accordance with clause 82, the following people will be the first Directors and will hold office until the end of the next Annual General Meeting at the expiration of their term. These people are:

a. David Ridden, QLD, 2 year term

b. Eddie Brooks, NSW, 2 year term

c. George Georgiadis, SA, 2 year term

d. Holly Klintworth, VIC, 1 year term

e. Ian Schmidt, SA, 1 year term

f. James Young, WA, 1 year term

g. Kate Sinfield, WA, 2 year term

h. Kristy Lark, TAS, 1 year term

i. Matt Hobson, QLD, 1 year term

j. Sebastian Reaburn, VIC, 2 year term

k. Stephen Parry, TAS, 2 year term

l. Vanessa Wilton, NSW, 1 year term”

Voting resulted in a unanimous acceptance of all recommendations.

At the subsequent Board meeting it was agreed that ASIC will be duly informed and there will be a ballot for the vacancy for the Division of Tasmania.

In accordance with 77.4, the board elects the following Directors for a 2-year term:

David Vitale, Starward, VIC

David Withers, Archie Rose, NSW.

In accordance with clause 79, the Directors elected from among their number a President, a Vice President, a Secretary and a Treasurer. Each of them will hold office until the end of the next Annual General Meeting.

The Chief Executive conducted the process of filling the Officers of the board.

The role of Secretary and treasurer was combined.

The following positions were declared elected:

President: Holly Klintworth

Vice President: David Vitale

Secretary/Treasurer: Matt Hobson

Australia will miss out on the economic opportunity presented by its promising spirits manufacturing sector without urgent intervention by the Federal Government, the Inquiry Into Food and Beverage Manufacturing heard today in Canberra.

Peak industry bodies Spirits & Cocktails Australia and the Australian Distillers Association today appeared before the House of Representatives Standing Committee on Industry, Science and Resources at Parliament House.

Australian Distillers Association chief executive Paul McLeay said the Australian distilling industry should be integral to the government’s Future Made in Australia policy.

“However, the Government’s outdated policy settings and inaction has placed Australian-made spirits at a significant competitive disadvantage in our home market and abroad,” he said.

“Just as previous governments recognised the potential of Australian wine, with the right policy settings and infrastructure, Australian spirits can realise a $1 billion export opportunity by 2035.

“If we do not act now, Australian distillers will be outpaced by other emerging spirits markets in meeting growing consumer demand for premium products – and Australia will miss out on the economic windfall that could be ours.”

Spirits & Cocktails Australia director Nicole Lestal said the Government must release the handbrake that is the current excise regime.

“While Australian spirits account for 20% of alcohol consumption, it accounts for 50% of alcohol taxes,” she told the Committee.

“This structural disadvantage impedes innovation and opportunities to re-invest in Australian spirits manufacturing.

“Our global spirits industry experience tells us that when governments act decisively and across multiple fronts to provide coordinated support, it incentivises investment to achieve scale and unlock further opportunities for economic value-add and innovation.”

Quotes from witnesses appearing for Spirits & Cocktails Australia:

“Suntory Oceania’s new $400 million carbon neutral facility in Ipswich, Queensland, provides the Committee with a real time example of the positive impact that direct foreign investment can have on the Australian food and beverage manufacturing sector. However, there is little or no incentive for global spirit companies to invest in the expansion of the Australian spirits industry while our excise rates are so overwhelmingly uncompetitive with other countries like Japan, the United States, Ireland, Scotland and Mexico.”
Mark Hill – treasurer, Spirits & Cocktails Australia and managing director, Suntory Global Spirits Oceania

“After the UK Government froze excise in 2015, Brown-Forman invested approximately $500 million in acquiring three Scotch whisky distilleries. Nine successive freezes in the U.K. have provided certainty to further invest in expanding these businesses, tripling exports and significantly enhancing their tourism offerings as a result, among other economic benefits. Unfortunately, the current conditions and the uncertainty borne of Australia’s excise regime – which is the third highest spirits tax in the world – are inhibitors for global companies like ours making such an investment in this market.”
Kylie McPherson – member, Spirits & Cocktails Australia and vice president, director of public affairs Brown-Forman Australia

“New world whisky is currently on the rise in many corners of the world. Australia has an opportunity to grow our category into something of global significance synonymous with quality and innovation, following in the footsteps of Japanese and Scotch whisky, while contributing substantially to domestic employment and economic growth.”
Satya Sharma – director, Spirits & Cocktails Australia and chief executive officer, Lark Distilling Co.

Quotes from witnesses appearing for Australian Distillers Association:

“We know that nothing tastes like Australia. Australian spirits celebrate flavour and unique native ingredients that are not found anywhere else in the world. This provides Australia with a point of difference from other spirits-producing nations. That’s why our industry needs coordinated, targeted support to both succeed at home and take distinctive Australian spirits to the world.”
Holly Klintworth – president, Australian Distillers Association and managing director, Bass & Flinders Distillery

“My experience of living in the US for the last five years has shown that it is extremely difficult to build an export market for Australian spirits without the coordinated support that only Government can provide. When Starward shows up at prestigious international trade shows like ProWine, I blow my entire export marketing budget on a trestle table that gets lost in the acres of exhibitors, while Australian winemakers have pride of place in an elaborate pavilion, proudly showcasing their provenance. It’s unfortunate that when we ask Austrade for the same opportunities, we are informed that their support does not extend to spirits. The consumer demand is there, we just need Government to recognise the potential of our industry.”
David Vitale – vice president, Australian Distillers Association and founder, Starward Australian Whisky

The Spirits & Cocktails Australia and Australian Distillers Association submissions are available to download on the Inquiry website.

In light of recent changes to Wage Summaries and General Awards effective 1 July 2024, we have updated our HR Advisor resources.

Please note, only some awards attract wage updates from 1 July, 2024, see below:

Effective – 1 July 2024:

The below remain unchanged, however have been included for convenience:

Additional information can be sourced from Fairwork, links provided below.

Fairwork – ‘2023 - 2024 Annual Wage Review

Fairwork – ‘2023 - 2024 Annual Wage Review - award minimum wage increase

All Fairwork Awards can be found here

Tax Relief

As you may already know, the Australian Taxation Office (ATO) will be implementing tax relief effective from 1st July 2024 for all Australians.

Due to this upcoming change, adjustments will be made to the net amounts transferred to each employee if they are currently set up for recurring transfers from the business bank account. For further details, please refer to the following link. On this link, please find the new net amounts payable to your employees from the first pay run in July.

Superannuation Guarantee rate increase

Additionally, as of July 1, 2024, the super guarantee will increase from the rate 11% to 11.5%. The super guarantee will continue to rise by 0.5% until it reaches 12% from FY26. Please refer to this link for additional reference.

If you have any questions or require further clarification, please feel free to contact us at the new Australian Distillers HR Advisory Service.

HR Advisory Service

On Friday, 5 July 2024 the Fair Work Commission handed down a decision (Decision) in an ongoing matter to address uncertainty in the General Retail Industry Award 2020(Retail Award). 

Clause 15.7 of the Retail Award 

Following consultation between unions and employer groups, minor amendments have been made to clause 15.7(c) of the Retail Award. Clause 15.7(c) previously read:  

Column 1 Type of employment    Column 2 When an employer must pay overtime    Full-time employee Overtime is payable for hours worked:  in excess of the ordinary hours of work; or  outside the span of ordinary hours (excluding shiftwork), subject to clause 15.2; or  outside the roster conditions prescribed in clause 15 - Ordinary hours of work and rostering arrangements.  Part-time employee  Overtime is payable for hours worked:  in excess of their guaranteed hours as agreed in clause 10.5 (a) or as varied under clause 10.6 or clause 10.11; or  outside the span of ordinary hours (excluding shiftwork), subject to clause 15.2. Casual employee  Overtime is payable for hours worked:  in excess of 38 ordinary hours per week or, if the casual employee works in accordance with a roster, in excess of 38 ordinary hours per week averaged over the course of the roster cycle; or  outside the span of ordinary hours (excluding shiftwork), subject to clause 15.2; or   in excess of 11 hours on one day of the week and in excess of 9 hours on any other day of the week.

The Decision took effect immediately from 5 July 2025 however, in accordance with section 165(3) of the Fair Work Act 2009 (Cth), the changes to the Retail Award do not take effect in relation to a particular employee until the start of the employee’s first full pay period that starts on or after 5 July 2024.

The employer may roster an employee to work ordinary hours on 6 days in one week if the employee is rostered to work ordinary hours on no more than 4 days in the following week.

Following the Decision and effective from 5 July 2024, clause 15.7(c) has been replaced with the following: 

The employer may roster an employee to work ordinary hours on 6 days in one week per two-week cycle, provided that in the other week in that cycle the employee is rostered to work ordinary hours on no more than 4 days. 

Clause 21.2 of the Retail Award 

As a result of the Decision, clauses 21.2(a), 21.2(b) and 21.2(c) of the Retail Award have been deleted the replaced with a table for ease of reading and usability. The new clause 21.2(a) reads as follows:

An employer must pay an employee overtime for hours worked in accordance with Table 10—Application of overtime:

Table 10 – Application of overtime:

In addition, table references and references to clauses 21.2(a) have been amended through the Retail Award where appropriate.

 

When do these takes take effect?

Whilst the Decision does not make significant changes to the substance of the Award conditions, the changes reflect the Fair Work Commission’s ongoing commitment to addressing usability of the Retail Award and removing uncertainty. However, should you have any questions about how the Decision may affect the rostering or payroll practices in your business, please use our HR Advisor Service.

Due to the popularity of the Mojito Mix at the annual Australian Distillers Conference 2024 Fever-Tree would like to extend a limited time offer, available exclusively to ADA members. Purchase one case of Fever-Tree Mojito Mix 8x500mL and get the second case half price.

Orders will be placed by Fever-Tree through Paramount or ALM. If interested in this offer, please contact us via email for the order to be processed. If you do not have a Paramount or ALM account and still wish to have this deal, please reach out and our sales team will endeavour find a way to accommodate.

Any queries relating to the deal, please contact Steve Carr – Trade Marketing Manger 

Deal valid for 6 weeks.