Cheers to tax relief for small brewers

SMALL brewers and distillers will be big winners in this month’s federal budget, with the government tipped to give liquor producers a tax cut worth up to $250,000 a year.

The changes, which are to come into effect from the start of July, will more than triple the volume of liquor that producers can sell before they have to pay excise tax.

Brewers and distillers currently get a rebate from the government of 60 per cent of the money due in excise when their product leaves their warehouse, up to an annual cap of $100,000. But under the plan to be revealed this month, the Commonwealth from now on will completely remit all the duty payable by brewers and distillers on the first $350,000 they owe the tax office.

Although the change will apply to all producers, it will mainly benefit the microbreweries and small distillers whose numbers have swollen in recent years. The changes will amount to a tax cut to the sector worth $255m a year.

Treasurer Josh Frydenberg said the change was great news for smaller brewers and distillers around the country.

“Australian brewers and distillers are world leaders in their field and this measure is going to assist them to continue to invest, grow and create jobs,” he said.

The change has been greeted with open arms by producers. Stuart Gregor who cofounded Four Pillars gin and is president of the Australian Distillers Association said it was a “great day” for distillers.