Aussie brewers and distillers will receive tax relief of up to $350,000 in the coming financial year under changes to excise duty announced in the May budget.
Starting July 1, the excise refund cap for small brewers and distillers will be boosted from $100,000 to $350,000 per year. Eligible brewers and distillers will also receive a 100% refund of any excise duty they pay, rather than the 60% refund that previously existed.
The scheme will offer a total of $225 million in tax relief to the country’s 1000 brewers and distillers that employ about 15,000 people.
In line with the government’s December announcement, the excise remission scheme will allow eligible alcohol manufacturers to receive their excise duty remission automatically.
The automatic tax relief measure is intended to reduce administrative overheads for businesses, and help business owners address cash flow concerns.
Announcing the scheme on Wednesday, Assistant Treasurer Michael Sukkar said that the changes will provide further tax relief for small businesses.
“By continuing to reduce the tax burden on this growing sector, we are supporting small businesses right across the country,” Sukkar said.
The changes will also bring taxes for beer and spirits manufacturers in closer alignment to those paid by businesses in the wine industry.
Under amendments to excise legislation, the excise duty remission scheme is now aligned with the existing wine equalisation tax rebate available to wine producers.