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Tax relief has cheered Australia's beer and spirit producers – but what will it mean in the bottleshop? | Australian food and drink


Those in the industry say last week’s decision will benefit the hundreds of boutique breweries and distilleries that dot the landscape, particularly in regional areas. But while it will allow them to employ people, buy more kit and enter the market, the industry says it will unlikely bring down prices.
Jon Lark, founder and brand ambassador for Lark Distillery in Tasmania and the former head of the Ada, says the decision was more about making it easier to start up a new business or grow an existing one.
“It’s the one thing that’s held our industry back from growing more than it has done until now,” Lark says. “There was a distiller in South Australia who was addressing a group of people, saying I just wanted you to know that I got an order from one of the big liquor companies, and I turned them down. ....

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Cheers! Government brews up huge tax break for distilleries


Effectively it s like our business being turbocharged.
Instantly our cash flow positions improve and that money can be spent where it s needed to grow our business. We re very excited about it.
While Mr Hobson said the announcement was a big win for the industry, he urged the government to consider lowering the spirits tax.
The government certainly hasn t moved on the rate of excise, which again we highlight is the third highest in the world in regards to the tax on spirits, he said.
Cavu Distillery’s Sunshine and Sons brew. Picture: Patrick Woods
The industry will continue to lobby for change and certainly we re disadvantaged in comparison to wine makers producing brandy. ....

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