Australian breweries and distilleries will receive tax breaks of up to $ 350,000 in the coming fiscal year due to excise tax changes announced in the May budget.
Starting July 1, the cap on excise tax refunds for small breweries and distilleries will be increased from $ 100,000 to $ 350,000 per year. Eligible brewers and distilleries also receive a reimbursement of 100% of the excise tax they have paid instead of the previous reimbursement of 60%.
The program will offer a total of $ 225 million in tax breaks to the country's 1,000 brewers and distillers, who employ approximately 15,000 people.
In line with the government's announcement in December, the excise duty waiver system will allow eligible alcohol manufacturers to automatically receive their excise duty waiver.
The automatic tax break is designed to reduce administrative burdens for businesses and help business owners resolve cash flow concerns.
When announcing the program on Wednesday, Deputy Treasurer Michael Sukkar said the changes will provide further tax breaks for small businesses.
"By further reducing the tax burden in this growing sector, we are helping small businesses across the country," said Sukkar.
The changes will also bring the taxes for beer and spirits manufacturers closer to the taxes paid by companies in the wine industry.
In accordance with the changes to the excise tax regulations, the excise duty waiver scheme will now be adapted to the existing wine equalization tax discount for wine producers.