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Over the weekend, the Prime Minister committed to providing tax relief for Australia’s distillers, brewers and wine producers by increasing the excise remission cap to $400,000 (from $350,000).

We welcome any reform that will address the unfair taxation system that is hurting Australian owned brewing businesses – and their customers.

While on the surface this looks to be a generous gesture by the Labor government as they head into an election – unfortunately, the fine print indicates that this change would not apply until 1 July 2026.

This means our small Australian owned brewery businesses, who already contribute approx. $3.53 billion to the nation’s economy annually, need to brace for a further two excise tax increases before this promise is delivered. AND the Albanese government must be re-elected first.

The challenges our industry is facing have garnered widespread attention because in a cost-of-living crisis a beer at the pub, or over a backyard BBQ is becoming unaffordable.

This pre-election commitment comes just days after the release of the long-awaited report from The House Standing Committee on Industry, Science and Resources Inquiry into food and beverage manufacturing in Australia titled Food for Thought: The Opportunities and Challenges for Australia’s Food and Beverage Manufacturing Industry.

The report noted that approximately 40% of the submissions received were from the alcohol industry with a focus on the rates of taxation and the effects on the industry.  You can read the IBA’s submission here.

Unfortunately, rather than tackling the direct link between the unfair and ever-increasing taxation on small brewing businesses and their ability to invest in productivity and innovation – the Committee concluded that those issues were too difficult and, only weeks before an election, have recommended another inquiry.

In August 2024, in response to the motion from Pat Conaghan MP, Federal Member for Cowper (Nationals) calling on government to develop a sensible package of excise tax reforms, Tania Lawrence MP (Labor) said:

“The Labor government is working to understand these issues across the sector, hence the present inquiry into food and beverage manufacturing by the House Standing Committee on Industry, Science and Resources. The challenge before us is to chart a course that encourages healthy growth and competition.
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Fortunately, the review that is underway will provide an evidence- based approach. Of the 121 submissions received to date, the majority, 68, are from wine, beer and spirits producers and businesses impacted by the excise. I’m confident the review will frame their recommendations—and get them right—to lead to strong and sustainable growth and to add value to the economy for Australian consumers and businesses of all sizes.

Rather than do as Tania Lawrence MP foreshadowed, and provide meaningful actions for small Australian owned breweries, the Food for Thought Report delivered a recommendation for yet another inquiry into the alcohol industry. 

As far back as March 2024, the House Standing Committee for Economics Better Competition, Better Prices Report noted that, “Australia has one of the most restricted beer sectors in the world, with two large foreign-owned corporations dominating beer supply, and two large companies dominating the retail beer sector”. 

Assistant Competition Minister Andrew Leigh, is also on record saying that the Better Prices, Better Competition Report “showed there is plenty of reason for the Australian Competition and Consumer Commission to investigate the beer industry.”

Labor have more than enough evidence from their own inquiries to demonstrate that unless they take immediate action more Australian owned breweries will close and more jobs will be lost.

Unfortunately, they have decided to continuously kick the can of responsibility down the road.

Recommending another inquiry and promising a tax break 18 months into the future just before an election is a cop out. The Labor party are still in Government and if they really wanted to – they could show leadership today.

It’s no surprise then that beer made by an Australian owned brewery is becoming unaffordable and frankly that’s un-Australian.

If you want to help #saveindiebeer then don’t forget to get involved in our Campaign here.