From 1 July 2026, the excise remission cap for eligible brewers and distillers will be lifted by $50,000 to $400,000. The Wine Equalisation Tax producer rebate will also be increased.
Prime Minister Anthony Albanese announced the change on Saturday, 22 February while visiting the Killara Distillery in Tasmania.
Around 1500 brewers and distillers, and 3000 wine producers currently access the two tax schemes. The tax relief is estimated to decrease tax receipts by $70 million over five years from 2024-25.
Albanese said the change would, “back an important local industry as well as supporting regional tourism, investment and job creation”.
Killara Distillery founder and Tasmanian Whisky and Spirits Association president, Kristy Lark-Booth, said the additional relief came a time when it was needed most by Tasmania’s 77 distilleries.
“We know that Tasmania produces some of the world’s most distinctive spirits, and there is huge scope to create a thriving export industry to rival the likes of more established distilling industries in Japan, Ireland and the US.
“Fifty thousand dollars will provide much-needed headroom for Tasmanian whisky and spirits producers to continue investing in their businesses and laying down barrels to support the growth of the industry, both at home and abroad,” Lark-Booth said.
Treasure Jim Chalmers said brewers, distillers and winemakers played a large role in many local economies.
“We’re pleased to have found room in a tight budget to provide some tax relief for a really important industry creating jobs and opportunities around Australia,” Chalmers said.
Australian Distillers Association (ADA) chief executive, Paul McLeay, said the benefits would flow to 700 craft distillers throughout the country, half of which are in regional and rural Australia.
“Eighty-eight per cent of Australian distillers are small businesses and today’s announcement means they can continue investing in enhancing production, supporting regional employment and providing unique destinations for tourists,” McLeay said.
Export assistance
Albanese also announced the Australian Trade and Investment Commission (Austrade) would be providing Australian distillers, brewers and wine producers with additional support to help them grow their exports in high priority overseas markets.
“This support includes the opportunity to join in trade missions, expert advice and connections to help our small and medium size exporters tap into fast growing markets, including in Southeast Asia and beyond,” he said.
McLeay said, “We recognise the additional funding announced today for Austrade to help the industry realise its export potential, but we know that more needs to be done.
“Research shows that with the right settings and support, Australian spirits exports can grow to be worth $1 billion in trade value within the decade.”
The ADA has put forward the Spirits Export Accelerator Strategy to provide the necessary infrastructure to upskill distillers and protect the integrity and reputation of Australian spirits in export, ensuring the right checks and balances are in place.
“We know that with this support, we can build on the Albanese Government’s objectives of growing domestic manufacturing, diversifying exports and supporting regional communities.
“We look forward to continue working with the Prime Minister and his team to realise this potential,” said McLeay.
