Cheers! Tax relief for Blue Mountains small brewers and distillers to support more jobs
Local small brewers and distillers will benefit from $255 million in tax relief to support more jobs and investment as part of the 2021-22 Budget.
Under the government’s plan to support jobs in the growing sector, small brewers and distillers will benefit from a tripling of the excise refund cap from $100,000 to $350,000 per year.
Treasurer Josh Frydenberg said that from 1 July 2021 eligible brewers and distillers will be able to receive a full remission of any excise they pay, up to an annual cap of $350,000.
“Our changes will align the benefit available under the Excise Refund Scheme for brewers and distillers with the Wine Equalisation Tax (WET) Producer Rebate,” Mr Frydenberg said.
“Australian brewers and distillers are world leaders in their field and this measure is going to assist them to go forward with confidence.”
Liberal Senator for Western Sydney, Senator the Marise Payne, said lowering taxes was in the Morrison Government’s DNA.
“Unshackling businesses from higher taxes is helping to cement our economic recovery from the COVID-19 pandemic,” Senator Payne said.
“This is part of our plan to support jobs and create more opportunities for businesses to get ahead.”
Harriet McCready, co-owner of Mountain Culture Beer Co., welcomed the government’s tax relief package.
“After the COVID-19 shock, we’re thrilled the federal government is raising the refund cap,” Ms McCready said.
“We know brewers have been advocating for this, so I’m pleased to see the government has heard our concerns and is delivering.
“This tax relief will mean we can invest back into our business, hire more staff, increase our manufacturing capacity and retain more savings so we can grow.
“Importantly, we’ll be able to compete on a more even playing field internationally which will mean more people will be able to enjoy our beers produced right here in the Blue Mountains.”
The announcement builds on the Morrison Government’s strong track record of supporting small brewers and distillers, which includes:
- enabling them to automatically receive excise duty remissions when they lodge excise returns;
- providing them with record investment incentives; and
- fast tracking the reduction in the small company tax rate to 25 per cent by 1 July 2021.
The Morrison Government is committed to assisting local manufacturing businesses to grow, create jobs and support Australia’s economic recovery.