Australian distillers have welcomed the Australian Government’s announcement that it will provide tax relief for Australia’s distillers, brewers and wine producers.
However, the AHA said the new measures would do little for anyone struggling to afford a drink at a pub.
Currently brewers and distillers get a full refund of any excise paid up to $350,000 each year. The Australian Government said it will increase the excise remission cap to $400,000 for all eligible alcohol manufacturers. It will also increase the Wine Equalisation Tax (WET) producer rebate to $400,000.
According to the announcement, adjusting the taxation arrangements will “back an important local industry as well as supporting regional tourism, investment and job creation”. Currently around 1500 brewers and distillers and 3000 wine producers access these tax incentives.
The proposal will apply from 1 July 2026.
In addition to the tax relief, the Australian Trade and Investment Commission (Austrade) will 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 small and medium size exporters tap into fast growing markets, including in Southeast Asia and beyond.
The tax relief is estimated to decrease tax receipts by $70 million over five years from 2024-25.
Prime Minister Anthony Albanese made the announcement at Killara Distillery in Tasmania.
“To build Australia’s future, we need strong small and medium sized businesses generating jobs and economic opportunity for Australians,” he said.
“This common sense measure will back thriving local industries and open the way for growth.”
President of the Tasmanian Whisky and Spirits Association and founder of Killara Distillery Kristy Lark-Booth said the tax relief came at a time when it is needed most by Tasmania’s 77 distilleries.
“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,” she said.
“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 United States.”
Treasurer Jim Chalmers said: “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.
“Brewers, distillers and winemakers play a large role in many local economies and this support will help them invest and grow.”
Minister for Trade and Tourism Don Farrell: “Supporting small distillery, brewing and wine businesses is not just about producing exceptional products – it’s about creating jobs, fostering local economies, and building a better Australia.
“By boosting our export support for these businesses, we are helping fast-track their success in international markets which will create even more jobs at home.”
Australian distillers welcome tax relief
Australian Distillers Association chief executive Paul McLeay said the tax benefits announced by the Australian Government 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,” he 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.
“That’s why we’ve called on the Government to adopt our 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 before product leaves our shores.
“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.”
Wine industry calls for more support
Australian Grape & Wine said it welcomed the Albanese Government’s announcement to increase the Wine Equalisation Tax (WET) producer rebate to $400,000, and boost Austrade’s support for wine exporters.
However, Australian Grape & Wine’s Chief Executive Lee McLean cautioned that while these measures provide some relief to those who are eligible, more targeted action is needed to rebalance supply and demand and drive a sustainable recovery.
“Increasing the WET rebate will help eligible businesses under pressure,” said McLean. “However, the ongoing oversupply of red wine continues to have a crippling impact on grape prices, wine prices, and the viability of businesses along the supply chain.”
In its Pre-Budget Submission, Australian Grape & Wine has outlined a suite of measures to help the sector recover by addressing the supply-demand imbalance, including:
- $78 million over three years for an export market stimulus to increase global market presence and reduce oversupply;
- $30 million in sustainability support to prevent vineyard abandonment, mitigate biosecurity threats, and protect long-term land values; and
- $20 million for a domestic marketing campaign to boost food and wine tourism, increase domestic sales, and support regional economies.
“The Australian Government has an opportunity to deliver bold, industry-led solutions to some of the toughest challenges grape growers and winemakers have ever faced,” McLean said.
“By directly supporting sales growth at home and abroad, and providing growers viable pathways to sustainability and profitability, we can drive recovery and secure the sector’s future. These measures would complement the Prime Minister’s recent announcements and help reset the industry for long-term success.’
Australian Grape & Wine urged the Government to prioritise these investments in the 2025 Budget to ensure the sector to recover, adapt, and grow. Ongoing support for trade, market diversification, sustainability, and regional development will be key to securing a strong future for Australian wine businesses.
No relief for drinkers in new policy
The Australian Hotels Association said the Australian Government’s announcement would provide tax relief for brewers, distillers and wine producers, but would do little for anyone struggling to afford a drink at a pub.
AHA National CEO Stephen Ferguson said that while brewers, distillers and wine producers would benefit from having their excise rebate increased by $50,000, “unfortunately, that benefit is likely to be absorbed by those businesses with little benefit, if any, flowing on to consumers”.
“Consumers will still be faced with the Government’s twice-yearly excise increases, with pubs being forced to pass the tax increase on to consumers,” he said.
“The 84th increase is still due on 1 August this year. Excise is a lazy, hidden tax and Australians continue to pay the third highest excise in the world. Pubs have no control over excise and are stuck in the middle having to pass the tax on to ordinary Australians.”
The AHA said it maintained its call for a freeze excise for beverages sold in licenced premises such as pubs, clubs bars and restaurants.
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