Cheers to tax reform
TASMANIAN craft brewers are raising their glasses to celebrate after winning a longfought industry battle for beer tax changes.
The changes, to be announced by federal Treasurer Scott Morrison in next week’s budget, will mean craft breweries are no longer slugged with a higher tax for using smaller beer kegs.
In the past beer sold in kegs 48 litres or larger attracted a tax of $34 a litre, while smaller kegs were taxed at $49 a litre. The new laws will apply to beer sold in kegs eight litres or larger.
Local craft beer producer Dave Tottle, who runs Devils Brewery Tasmania at Margate, said the changes were a positive move.
“I think it’s certainly a step in the right direction to make it a fair playing field between us as the small Tasmanian producers and the big guys,” he said. “I think with the demand and popularity of craft beer it will give us the opportunity to get our beer into smaller venues where in summer if someone doesn’t have cold storage, with a smaller keg they can run it through quicker and there’s less chance of it going off.”
Across the country there are now around 380 craft beer producers and 21 of those are in Tasmania.
As part of the changes, from July 1, 2019, the alcohol excise refund scheme cap will increase from $30,000 a year to $100,000 for brewers and distillers. It is estimated about 100 breweries nationwide will benefit from the change.
Under the Wine Equalisation Tax system, at present wine makers can claim excise refunds of up to $500,000, however this will drop to $350,000 a year.