Tax relief for alcoholic beverage producers in Australia

Australia’s federal government has announced tax relief for the country’s distillers, brewers and wine producers, effective July 1, 2026.

Currently, brewers and distillers receive a full refund of excise taxes paid up to a limit of $350,000 per year. Under the new measure, this limit will be raised to $400,000 for all eligible alcohol manufacturers. In addition, the Wine Equalization Tax (WET) refund will also be increased to $400,000.

Around 1,500 brewers and distillers, along with 3,000 wine producers, already benefit from these tax incentives.

“We are pleased to have found room in a tight budget to provide tax relief to a key industry that generates jobs and opportunities across Australia.” said Treasurer Jim Chalmers.

In addition to tax relief, these sectors will be supported by the Australian Trade and Investment Commission (Austrade) to boost their exports in strategic markets. This initiative will include participation in trade missions, expert advice and the opportunity to establish contacts to expand into growth markets such as Southeast Asia.

“Supporting small distilleries, breweries and wineries not only means encouraging the production of quality products, but also strengthening local economies and creating jobs.” highlighted the Minister of Trade and Tourism, Don Farrell.

With the reinforcement of exports, the government seeks to accelerate the growth of these companies in the international arena, which will also have an impact on the generation of more employment in the country.

This tax relief package is estimated to reduce tax revenues by $70 million over five years, beginning in fiscal year 2024-2025.