The Morrison government has now put in place the necessary regulations to ensure that Australia’s brewers and distilleries receive additional tax breaks from July 1, 2021.
Under the changes announced in the 2021–22 budget, the excise duty waiver scheme for alcohol manufacturers will allow brewers and distillers complete waiver of all excise taxes they pay up to an annual cap of US $ 350,000.
Deputy Treasurer Michael Sukkar said the changes will provide further tax breaks for small businesses like brewers and distillers.
“By further reducing the tax burden in this growing sector, we are helping small businesses across the country,” said Minister Sukkar.
“There are around 600 brewers and 400 distilleries in Australia, with the sector employing around 15,000 people. These changes will support the brewing and distilling sector across the country, creating more jobs and investment.
“As a government, we always focus on creating the conditions that enable companies to grow and thrive.”
The 2021-22 budget measure builds on and complements the government’s MYEFO announcement for 2020-21, which will allow eligible alcohol makers to automatically receive their excise duty remission July 2021.
These changes will align the waiver program with the existing wine equalization tax (WET) producer discount for wine producers. This ensures that all alcohol manufacturers are on an equal footing and provides additional tax breaks for Australia’s artisanal brewing and distillation industries.
For more information on the new regulations, please visit the Federal Register of Legislation website and for more information on the measure please visit the Australian Taxation Office website.
Photo credit: © stock.adobe.com / au / Brent Hofacker