Australian spirits manufacturers have welcomed recommendations from a federal parliamentary inquiry that will assist in unlocking the industry’s $1 billion export potential.

The House of Representatives Standing Committee on Industry, Science and Resources tabled recommendations from its Inquiry Into Food and Beverage Manufacturing in Australia yesterday, following a referral by Minister for Industry and Science, the Hon Ed Husic MP, on 18 March, 2024.

The bipartisan committee, chaired by Labor MP Rob Mitchell, recommended the establishment of a body called Spirits Australia to improve regulation, support innovation and realise export opportunities, acknowledging the success of the Wine Australia model.

The committee further recommended that the Federal Government provide increased Austrade assistance for small and medium enterprises looking to export Australian food and beverage products to Asia.

The committee acknowledged that 40 per cent of the submissions it received came from the alcohol industry and raised concerns about the system of alcohol taxation in Australia. Due to the complexity of this issue, the committee did not draw any conclusions but recommended that a House Select Committee be formed to inquire and report into all aspects of Australia’s alcohol industry.

Australian Distillers Association chief executive Paul McLeay thanked the committee for the interest it had shown in the spirits sector and understanding its opportunities and challenges.

“These recommendations demonstrate the committee recognises our potential to follow in the footsteps of Australian wine, which has become a $2.5 billion export industry by working in partnership with the Federal Government,” he said.

“We call on the Government to adopt our Spirits Export Accelerator Strategy as the first step towards fulfilling the objectives of the Spirits Australia body.”

Spirits & Cocktails Australia chief executive Greg Holland said the industry looks forward to working with the Government to implement the report’s recommendations.

“But we must remind the Government that Spirits Australia cannot be industry funded while we are paying the world’s third highest spirits tax. There simply isn’t the headroom for an additional levy,” he said.

“Wine Australia was fully Government funded in the beginning, and it remains partly Government funded today, as the committee itself acknowledges in its report.

“Spirits Australia must be funded initially by allocating a modest amount of the $6 billion in excise our industry pays to the Government every year.”