Castle Glen Australia, Granite Belt Brewery hope to reap rewards of new tax reduction

It’s bottoms up to the region’s alcohol manufacturers as tax cuts and extra cash flow promise to boost job numbers and give small businesses a much-needed break amid the Covid crisis.

Castle Glen Australia co-owner Cedric Millar said the cost of producing and selling a bottle of grog is expensive. Photo: Contributed

Many Granite Belt distillers and breweries are set to reduce prices and increase employment numbers as they expect to recoup more money following tax relief.

New legislation enforced from July 1 has enabled eligible brewers and distillers to receive a full remission on any excise they pay up to $350,000, which is a 40 per cent increase from current entitlements of up to $100,000.

The region’s alcohol manufacturers say the tax break will allow them to keep more of what they earn while investing in and supporting the local economy through jobs and tourist numbers.

Granite Belt Brewery owners Geoff and Dee Davenport said the changes would allow the business to employ more people to help with an array of duties.

“We are now actively recruiting for new positions and investing the savings from the excise cap into the beer production and even thinking about reducing the price per bottle,” Mr Davenport said.

“This extra 40 per cent will have an impact on the cost price per alcohol unit and we want to pass that on to customers.”

Dee Davenport from Granite Belt Brewery said this tax relief will allow the business to employ more people. Photo: NRM

Castle Glen Australia co-owners Carol-Anne and Cedric Millar said the cost of producing and selling a bottle of grog was heftier then most would expect.

“In a bottle of whisky there is not much profit left after it sits in an oak barrel for years and then goes into the cellar before being sold,” Mrs Millar said.

Despite aged alcohol like whisky tasting better the longer its kept in a barrel, Mrs Millar said this rarely equates to a higher value or profit margin.

“You lose a lot of the product through evaporation and once it’s bottled and moved from the warehouse to the cellar door there is an immediate excise cost, no matter when it is actually sold,” she said.

Carol-Anne and Cedric Millar from Castle Glen Australia say the new excise reduction cost will allow their business to be more profitable. Photo: NRM

However under the new excise reduction cost, the Castle Glen Australia team say their production costs will be more sustainable.

“We have an awful lot of product sitting on the floor that we only get the excise back from once it’s sold,” Mrs Millar said.

“This excise reduction gives you more money, more on your bottom line that you can reinvest into the business.”

Originally published as Castle Glen Australia, Granite Belt Brewery hope to reap rewards of new tax reduction