The Australian Distillers Association and Spirits and Cocktails Australia applaud the Morrison Government’s decision to increase the excise refund cap for small distillers and brewers from $100,000 to $350,000 per year as part of the 2021-22 Federal Budget.

This initiative will deliver much needed assistance to more than 300 craft distillers, most of whom are based in rural and regional areas, and also represents a promising first step towards unleashing the potential of the Australian spirits industry.

Australian Distillers Association president Stu Gregor said: 

“This decision provides much needed relief for hundreds of craft distillers around the country that were severely impacted by COVID-19. It means craft distillers will have more capital available to help their businesses grow and to employ more locals – bringing important economic benefits through job creation, expanding farm production, regional tourism and hospitality for our communities.

“We have great ambitions to grow Australia’s world-class distilling industry and this is a great first step that will help the industry to grow.”

Spirits and Cocktails Australia chief executive Greg Holland said:

“The best alcohol tax system is a fair one, so we thank the Government for bringing the tax incentives offered to small distillers and brewers into line with those offered to small wine makers.

“However, we note that Australia’s alcohol tax regime remains fundamentally flawed and unfair, imposing a spirits tax that is already ten times higher than the US rate, and 68% higher than New Zealand’s, with further increases every six months.

“We look forward to continuing to work with the Government toward a fairer and more sustainable spirits tax regime – one that aligns spirits tax rates with brandy, and freezes CPI increases – to create jobs, investment and export opportunities in a burgeoning Australian industry.”