Budget brief: Craft brewers win long-fought excise tax relief

Emma Koehn - SmartCompany - 7 May 2018

Tomorrow’s budget might not contain a Santa sack of presents for small businesses, but Treasurer Scott Morrison has thrown one small win the way of the local craft brewing sector.

Independent beer brewers have long bemoaned tax arrangements that see smaller brewers pay a higher level of tax on smaller kegs, meaning craft brewers face hefty tax bills compared to their multinational competitors.

In June 2017, a coalition of craft brewers in Sydney’s inner west banded together to lobby for a change to taxation arrangements. At the time, independent brand Willie the Boatman told SmartCompany its tax bill was around $20,000 a month because it brewed beer in kegs smaller than 48 litres.

At present, kegs of 48 litres or less with an alcohol volume of up to three percent attract an excise tax of $42.50 per litre of alcohol.

On Friday, Treasurer Scott Morrison agreed to change the rules, announcing that the budget papers will include a policy to tax all beer kegs the same way if they hold eight litres or more. This would mean brewers paid around $8.50 per litre for all containers that hold more than eight litres. The same policy will also apply to distillers if they use containers of the same size. Read More