Small liquor brewers and distillers are set to receive some much-needed relief after the federal government announced a tax cut worth up to $250,000 as part of the 2021-22 Budget.
The support package, set to be unveiled in this month's budget, will benefit from a tripling of the excise refund cap for small brewers and distillers from $100,000 to $350,000 per year adding an estimated $55,000 into the pockets of small distillery owners.
The announced changes are expected to benefit about 600 brewers and 400 distillers, most of whom are in located in hard-hit rural and
regional Australia, allowing them to keep more of what they earn, helping them to invest, grow and support the employment of roughly 15,000
people.
Additional support to brewers and distillers across the country will also serve as much-needed relief for those businesses severely impacted
by COVID-19.
This will align the benefit available under the Excise Refund Scheme for brewers and distillers with the Wine Equalisation Tax (WET)
Producer Rebate.
The announcement builds on the Morrison Government’s track record of supporting small brewers and distillers including by enabling them to
automatically receive excise duty remissions when they lodge excise returns; providing them with record investment incentives; and fast
tracking the reduction in the small company tax rate to 25 per cent by 1 July 2021.
Download official Media Release here.
As experts in the liquor industry, we welcome any questions you may have in relation to how this will affect your business.
Get in touch on 03 5911 7000 or send us an email to arrange a chat.
On 31 March, the Fringe Benefits Tax (FBT) year ends. With the ever increasing budget deficits, the ATO will be reviewing whether all employers who should be paying FBT are, and that they are paying the right amount. Who needs to lodge a FBT return? Find out here.
