4 Brothers Brewing say new beer relief will be a welcome tax drop

A Toowoomba brewery says the new exemption for small brewers and distillers is just the top tax drop the industry needs to see more jobs created.

TOP TAX DROP: Adrian Cubit from Toowoomba’s 4 Brothers Brewing said the Federal Government’s new tax exemptions for small breweries are exactly what the industry needs to expand and offer more job opportunities. Picture: Mark Cranitch

An independent Toowoomba brewery says the new tax relief for small brewers and distillers will be the type of support needed to help businesses across Australia grow and brew to top strength.

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.

Adrian Cubit from 4 Brothers Brewing said the new tax exemptions would help create more job opportunities for employers as well as industry expansion.

SWEET SAVINGS SIP: Adrian Cubit from 4 Brothers Brewing said the tax exemption will be a great opportunity for small brewers to employ more staff and expand their business opportunities. Picture: Mark Cranitch

“One of the biggest things small brewers and the independent Brewers Association have been fighting for a long time is to create parity between how wineries and brewers are treated when it comes to tax exemptions,” he said.

“Wineries have been granted these exemptions ever since GST was introduced in 2000 through the excise wine equalisation tax, so they didn’t have to pay excise tax and were able to get a rebate on any of the wet tax they paid up to $500,000.”

Additional support to brewers and distillers across the country will also serve as much-needed relief for those businesses severely impacted by COVID-19.

As part of the Federal Government’s plan to support jobs in this growing sector, small brewers and distillers will benefit from a tripling of the excise refund cap for small brewers and distillers from $100,000 to $350,000 per year.

From July 1, 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.

Currently, eligible brewers and distillers are entitled to a refund of 60 per cent of the excise they pay, up to an annual cap of $100,000.

Mr Cubit said what this meant significant savings for the brewery industry which could be reinvested back into the business.

Adrian Cubit owner of 4 Brothers Brewing will soon move his business into Margaret Street.

“It’s going to save money for every single independent brewer but instead of making the end product cheaper it will mean brewers can reinvest in their businesses and expand to offer more job opportunities to their community,” he said.

Maranoa MP David Littleproud said his electorate had some of the best craft breweries and distillers in the country.

“That’s why the Federal Government’s Budget has included tax relief for alcohol manufactures to support local jobs,” he said.

“From the South Burnett, Southern Downs to Pechey and Betoota, it’s ‘bottoms up’ to local alcohol manufacturers with the government to increase the excise refund cap for distillers and brewers to support jobs and further grow our local grog creations.”

The new exemptions will align the benefit available under the Excise Refund Scheme for brewers and distillers with the Wine Equalisation Tax Producer Rebate.

“There are around 600 brewers and 400 distillers across Australia, with around two thirds operating in rural and regional areas,” Mr Littleproud said.

“The changes will allow these brewers and distillers to keep more of what they earn – helping them to invest, grow and support about 15,000 Australians that are currently employed in the sector.”