Craft brewers and distillers will no longer pay additional tax, allowing them to compete on fairer terms with large beverage companies.
“This is terrific news for the craft brewers and distillers in my electorate who will benefit from the Liberal Government’s continued support for Aussie small businesses,” Federal Member for Pearce, Christian Porter said.
Old Young’s Hand Crafted Spirits, owner and distiller James Young welcomed the recent announcement.
“Old Young’s currently employs one person to manage the cellar door and tasting room and we were recently awarded two gold medals at the 2018 Australian Distilled Spirit Awards for our Six Seasons Gin and our Common Gin,” Mr Young said.
“The increase in alcohol excise rebate will mean that I will be employing at least one, but more probably two staff in the distillery pretty much on the spot.
“Being able to employ more staff will enable me to create more award winning spirits and free me up to work on expanding both nationally and internationally.”
The alcohol excise refund scheme cap will increase from $30,000 a year to $100,000, from 1 July 2019 for all brewers and distillers.
“What this means is that craft brewers and distillers like Old Young’s Hand Crafted Spirits will be able to compete on a fairer playing field with large beverage companies,” Mr Porter said.
“This extra help to craft brewers and distillers will drive competition in a sector currently dominated by large domestic and multinational brewers, opening the door to new products and will likely put downward pressure on prices.”
This additional tax relief builds on the Liberal Government’s continued support for small business which includes:
legislated tax cuts for small and medium businesses;
the $20,000 instant asset write-off for small businesses; and
increasing the turnover threshold to $10 million for access to the small business concessions.