Joint Media Release with Country Liberals Candidate for Solomon Kathy Ganley and Country Liberals Candidate for Lingiari Jacinta Price
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 in the Northern Territory who will benefit from the Coalition Government’s continued support for Aussie small businesses,” Country Liberals Senator for the Northern Territory, Nigel Scullion, said.
“As part of our continued commitment to back Australian small businesses, the Coalition Government will increase the amount beverage companies can claim back on their excise and extend the concessional draught beer excise rate to smaller kegs, typically used by craft brewers.”
Country Liberals Candidate for Solomon, Kathy Ganley said 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 will be able to compete on a fairer playing field with large beverage companies,” Mrs Ganley said.
Country Liberals Candidate for Lingiari, Jacinta Price, said this additional tax relief builds on the Coalition’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 businessess; and
- Increasing the turnover threshold to $10 million for access to the small business concessions
“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,” Ms Price said.
Currently, draught beer sold in kegs exceeding 48 litres is taxed at lower rates compared with beer sold in smaller kegs. This is unfair for smaller brewery businesses. Extending the concessional draught beer excise rates to kegs of 8 litres or more will level the playing field for craft brewers, which typically use smaller sized kegs, to distribute their beer to pubs, clubs and restaurants.
There are around 380 craft brewers in Australia located across each State and Territory, employing the equivalent of almost 2,400 people. These brewers are predominantly small businesses and could benefit both from the increase to the excise refund cap and extended access to the concessional draught beer excise rate.
There are also over 100 domestic distillers, supporting around 1,600 jobs that could benefit from the changes.