This past weekend, the Government announced a new tax relief measure for businesses in the drinks industry.
Currently, brewers and distillers can receive a full refund of any excise paid up to $350,000 each year. However, the Government will raise the $350,000 cap to $400,000.
Wine producers will get the same relief via the Wine Equalisation Tax (WET) producer rebate program, which will also be increased to $400,000.
The measures will take effect from 1 July 2026.
Export help will also increase
In addition to the tax incentives, the Government will also provide distillers, brewers, and wine producers with additional support exporting to “high priority overseas markets” such as Southeast Asia.
Drinks industry businesses can expect opportunities to join in trade missions and receive expert advice and connections.
The Government claims that the tax relief will decrease tax receipts by an estimated $70 million over five years from 2024-25.
“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,” said Treasurer Jim Chalmers. “Brewers, distillers and winemakers play a large role in many local economies and this support will help them invest and grow.”
According to Australian Distillers Association chief executive Paul McLeay said more could be done to help the Australian drinks exports market reach its full potential, but praised the measure.
“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,” said McLeay.
“We recognise the additional funding announced today for Austrade to help the industry realise its export potential, but we know that more needs to be done.”
