Tax relief promised for distillers, brewers and wine producers

Australian distillers, brewers and wine producers have been promised tax relief by the federal government, applicable from 1 July 2026.

Currently, brewers and distillers get a full refund of any excise paid up to $350,000 each year. The government said it would 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.

About 1500 brewers and distillers, and 3000 wine producers, access the current tax incentives.

“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,” said Treasurer Jim Chalmers.

“Brewers, distillers and winemakers play a large role in many local economies and this support will help them invest and grow.”

In addition to the tax relief, Australian distillers, brewers and wine producers will also receive support from the Australian Trade and Investment Commission (Austrade) to help them grow their exports in high-priority overseas markets.

This includes the opportunity to join in trade missions, receive expert advice and make connections in order to tap into fast-growing markets, including in Southeast Asia and beyond.

“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,” said Minister for Trade and Tourism Don Farrell.

“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.”

The tax relief is estimated to decrease tax receipts by $70 million over five years from 2024–25.

Image credit: iStock.com/Edsel Querini