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Beer excise shake-up on the way

Beer excise shake-up on the way

Changes to alcohol excise laws are taking effect next month, including larger refunds for alcohol manufacturers and licencing changes for growlers. 

From July 1, 2019 the excise refund for alcohol manufacturers will increase to a maximum of $100,000 per financial year.

To be eligible you must you must:

>> have manufactured an alcoholic beverage and paid excise duty on it

>> have fermented or distilled at least 70% of the alcohol content by volume of the alcoholic beverage

>> hold a manufacturer licence authorising you to manufacture alcoholic beverages

>> be legally and economically independent of any other entity that has received a refund under the scheme (if you're not legally and economically independent of any other entity, only one manufacturer in your group is entitled to the refund).

IBA Chair, Jamie Cook said the increase to the excise refund cap will provide independent brewers with up to $70,000 more in capital to use on people, plant and equipment and also breaking into the market.

“The changes should result in a direct increase in employment, capacity and quality, allowing Independent Brewers to continue to supplement their communities, stimulate the economy and continue to disrupt a highly concentrated market,” he said.

The excise tariff laws that lower excise duty rates for beer in containers larger than 48 litres will now cover smaller containers of 8 litres or more.

Assistant Treasurer Stuart Robert said: "Currently, draught beer sold at pubs, clubs and other licensed venues from kegs exceeding 48 litres is taxed at lower rates compared with beer sold from smaller kegs. Extending the concessional draught beer excise rates to kegs of 8 litres or more will allow craft brewers producing smaller quantities of beer to benefit from the lower rates. This measure levels the playing field between small brewers and large brewers."

For more details, see the rates and rules at excise rates for alcohol.

Growlers and repackaging update

From July 1, entities will need to apply for a licence to manufacture alcohol if they decant beer (that has had excise duty paid on it at a concessional rate) into sealed containers:

>> between 8 and 48 litres (inclusive)

>> that aren’t designed to connect to a pressurised gas delivery system, pump delivery system or other prescribed system.

Next indexation of alcohol excise rates

The next indexation of alcohol excise rates will occur on August 5, 2019. This is due to the Australian Bureau of Statistics indicating the June 2019 CPI indexation figure will be published on July 31 2019.

The change to the concessional rates to beer kegs under 48 litres is, according to Assistant Treasurer Stuart Robert MP