Tax Relief !

 For many years Australia was served by a clutch of breweries which used their power to keep small craft brewers from selling their product across the bar in pubs.  The spirit trade was in International hands and only wine was widely produced and sold by individual vinyards.

That has been fast changing in recent times and today there is a much wider choice of beer available in most pubs. In fact, brewing beer is a fast growing industry and Australia now has six hundred, small independent brewers competing for market share.

A similar change has taken place with the distilling of spirits.  There are now four hundred small distilleries scattered across the states and territories supplying a wide range of spirits, including some new tastes which are finding wide appeal.

Next month, a new excise package will come into force that will make it easier for this industry to achieve market penetration.  Eligible brewers and distillers will be able to claim a refund on any excise they pay up to an annual cap of $ 350,000.

 This will replace the present arrangement, where  they are entitled to a rebate of sixty percent of the excise they pay up to a cap of $ 100,000.   The incentive will be there to expand and find a bigger market and this will dovetail with the return of our tourist trade, where visitors are looking for a host of new experiences.

Treasury department modelling expects this to benefit small brewers and distillers by about $ 55,000 a year, and these sectors directly employ about 15,000 Australian workers.

This is a long awaited relief. Our excise code is complicated and the tax on distilled spirits is the third highest in the world with a bottle of whiskey or gin attracting 57% of the retail price to tax.  Breweries also suffered an unfair tax burden, with tax on both drafted and packaged beer being the fourth highest in the world.

There is also an expectation that craft brewers and distillers will have a look at the export market. Australians travelling overseas would be gladdened to see a familiar brand on the shelves and would use the opportunity to introduce Australian ingenuity to friends and hosts.

This excise tax change is overdue and very welcome.  In the early days, all forms of alcohol was frowned upon by the churches and heavy taxes and reduced opening hours were imposed, resulting in the notorious " six O'clock swill ".

It is now recognised that a glass of beer after a days work, or wine or spirits with a meal is part of civilized living.  It is unfair to tax it out of existence !