Australian spirit distillers urge government to cut hard liquor tax

Australia’s craft spirits producers are banking on a budget boost to take their burgeoning sector to the next level.

Australia’s burgeoning craft spirits makers are hoping for a boost in the coming May budget, as pressure mounts to do something about the country’s punishingly high taxes on hard liquors that distillers say hurt their competitiveness and ability to create jobs.

Independent federal MP Andrew Wilkie will today move a motion in parliament calling for a cut in the excise tax rate on spirits, freeze indexed tax hikes for three years, and increase an excise refund scheme for small distillers to bring it into line with what is offered to small winemakers.

Member for Dennison Andrew Wilkie. Picture: Sam Mooy/Getty Images

The Daily Telegraph understands a number of Labor MPs will also speak in favour of the motion, which cannot come soon enough for Vanessa Wilton, who with her husband David, founded Sydney’s Manly Spirits Co. on the Northern Beaches in 2016.

Ms Wilton, who began her career in branding and marketing, says the high excise tax on hard liquor in Australia is hurting her expansion plans.

“At the moment, we employ about 24 people but we would like to employ more,” said Ms Wilton, whose company produces a range of boutique spirits using traditional distilling methods and unique native ingredients.

Co-Owner of Manly Spirits Vanessa Wilton pictured at the Manly Spirits distillery in Brookvale. Picture: Damian Shaw

“Our brand is very much about the vibe of championing where we are on the Northern Beaches,” she said.

“We use foraged marine elements and botanicals like sea lettuce and sea parsley and things that grow on the coast like nasturtium flowers.

“Why not champion what we have in Australia and not just use European flavours.”

Ms Wilton says that a cut in the excise tax would mean she and her husband would be able to expand the business, produce more product, and gain a bigger foothold in bottle shops around the world where customers are looking for a taste of Australia. At the moment, the excise tax on spirits is the third highest in the developed world, according to analysis by Spirits & Cocktails Australia.

The tax is two-thirds higher than what is paid in New Zealand, and nearly 10 times what it is in the United States.

That means on a bottle of craft spirits costing $80 in the bottle shop, more than half goes to the government.

“It’s quite a tough gig, only the brave hearted go into spirits in Australia,” Ms Wilton said.

Originally published as Australian spirit distillers urge government to cut hard liquor tax