2012 Federal Budget Relief For Microbreweries

[Bribie G]

Extending the microbreweries excise refund scheme

Revenue ($m) 2011‑12 2012‑13 2013‑14 2014‑15 2015‑16
Australian Taxation Office ‑ ‑2.5 ‑2.5 ‑2.5 ‑2.5

The Government will extend the current microbreweries excise refund scheme by increasing the maximum refund amount from $10,000 to $30,000 and removing the current production eligibility threshold of 30,000 litres of beer, with effect from 1 July 2012. The amendments will allow breweries to receive an excise refund of 60 per cent of excise paid, up to a maximum amount of $30,000 per financial year. They will also ensure that the refund does not penalise successful local breweries as they expand their production.

This measure is estimated to have a cost to revenue of $10.0 million over the forward estimates period.

 

[NickB]

Good stuff, it's a great start! Now, onward and upward with a scheme that equals the WET...!

 

[Doubleplugga]

only good thing he did

 

[Liam_snorkel]

Not quite what Oakeshott was gunning for but better than nothing. Good stuff.

 

[Wolfman]

A win is a win! It can only get better from here on in!

 

[bum]

Looks like they still have to pay the same amount up-front. I can't see that this will help the smaller breweries all that much.

 

[white.grant]

Removing the threshold will make it easier for nano breweries to access the refund so perhaps we will see a lot more small innovative breweries emerging.

 

[bum]

Ah, then that is something of a move in the right direction. Thanks for the correction.

 

[phoenixdigital]

Seems some changes were made to help out microbreweries.

http://www.abc.net.au/rural/news/content/201205/s3498403.htm

$30,000 seems a little bit low to me?

Any commercial guys here able to shed some light if this is a good thing or just a token effort?

 

[DU99]

looks like a move in the right direction

 

[felten]

That's still not equal with the wineries tax rebate is it?

 

[phoenixdigital]

looks like a move in the right direction

True. Further info I found about how big $30k is.

Seems Rob Oakeshott wanted the following

"He called for alcohol tax to be on the forum agenda and is pushing for a rebate of the beer excise to be lifted from $10,000 to $500,000 for brewers of less than 30,000 litres of beer a year."
http://afr.com/p/national/business_tax_los...08Y949zOg05X3nI

It seems small wineries get up to $500,000 back in excise which is massive compared to $30k
http://www.brewsnews.com.au/2012/02/excise...ers-parliament/

Your right though its a start and hopefully things start moving further in that direction.

 

[Ross]

It's great news for us, just the tonic we needed as we expand...
I'm not a fan of the WET, as much as it would be great to have equallity with wine, if your business model can't stand on it's own feet without handouts, you should be doing something else....


cheers Ross

 

[raven19]

Mod Edit - I combined the 2 threads on the same topic.

 

[Fish13]

Hey if the government is giving it away. Lap it up!

 

[DKS]

So how will this relate to or effect the average beer lover?
Daz

 

[itmechanic]

Seems some changes were made to help out microbreweries.

http://www.abc.net.au/rural/news/content/201205/s3498403.htm

$30,000 seems a little bit low to me?

Any commercial guys here able to shed some light if this is a good thing or just a token effort?

As a rapidly growing brewery this is great news for us.

 

[winkle]

So how will this relate to or effect the average beer lover?
Daz

Presumably small and growing micros will be under less fiscal pressure.
To you and me Daz, probably more choice in the longer term (a good start).

 

[Maheel]

Presumably small and growing micros will be under less fiscal pressure.
To you and me Daz, probably more choice in the longer term (a good start).

might be a bit more employment in Micros as well around the place if they can expand etc

growth is always a good thing jobs wise

not much else in the budget is thinking about "growth" apart from tax "growth" for the GOV...

 

[Newbee(r)]

Ummm in other news, the punter is going to be charged 20c a beer more from 1 July. :angry: Swannie didn't put that in lights in his budget speech did he! So the handouts to buy votes is going to be funded to the tune of over $2b in revenue from this increase over the next 12 months. It's enough to make you want to brew your own!!!! <_<

 

[DJR]

Ummm in other news, the punter is going to be charged 20c a beer more from 1 July. :angry: Swannie didn't put that in lights in his budget speech did he! So the handouts to buy votes is going to be funded to the tune of over $2b in revenue from this increase over the next 12 months. It's enough to make you want to brew your own!!!! <_<

Isn't that just the normal indexation of excise? Where's the 2 billion number come from, sounds a bit excessive when beer sales are at their lowest point in 60 years? Every time this happens it's actually a lot less than that in the actual excise, something around the 5-10c mark, but of course the cost of beer in the pub goes up just cos they have an excuse

 

[Newbee(r)]

Isn't that just the normal indexation of excise? Where's the 2 billion number come from, sounds a bit excessive when beer sales are at their lowest point in 60 years? Every time this happens it's actually a lot less than that in the actual excise, something around the 5-10c mark, but of course the cost of beer in the pub goes up just cos they have an excuse

CPI that compounds each year. Excerpt from news.com.au today


Beer drinkers won't escape the Budget pain, contributing an estimated $2.183 billion to Federal Government coffers over the next 12 months.
The $75 million tax revenue rise comes despite a fall in the number of Aussies enjoying a pot to the lowest level in 65 years.
Canberra is looking to steadily increase its take from the amber fluid by another $200 million by 2015.
Australian Hotels Association chief executive Brian Kearney said Australians who enjoy an ale were once again copping it in the hip pocket.
"The continuing tax grab by government directed towards drinkers whom Canberra sees as basically just a soft target is disappointing from our point of view," he said.
Mr Kearney said the bucket of money flowing from drinkers in the form of taxes was particularly disappointing, given great strides have been made in responsible alcohol consumption and the impact on drinkers' health.
"The days when Australia was top of the international drinking table are long gone," he said.
Mr Kearney was particularly critical of the twice yearly automatic tax rises applied to alcohol.
"The creeping CPI-based tax increases year by year results in the price of a pot over the bar increasing by 20c per annum," Mr Kearney said.


Read more: http://www.news.com.au/money/federal-budge...2#ixzz1uMnTeHGO

 

[DJR]

CPI that compounds each year. Excerpt from news.com.au today


Beer drinkers won't escape the Budget pain, contributing an estimated $2.183 billion to Federal Government coffers over the next 12 months.
The $75 million tax revenue rise comes despite a fall in the number of Aussies enjoying a pot to the lowest level in 65 years.
Canberra is looking to steadily increase its take from the amber fluid by another $200 million by 2015.
Australian Hotels Association chief executive Brian Kearney said Australians who enjoy an ale were once again copping it in the hip pocket.
"The continuing tax grab by government directed towards drinkers whom Canberra sees as basically just a soft target is disappointing from our point of view," he said.

$2b is the total, $75m is the increase. It's been happening for ages now. Just one more reason why we brew.

It is a bit rich for the AHA to come out and complain about it - it just means their continual price rises on beer at the pub go to someone other than themselves. The tone of that article makes it sound like it's something new, when it's been around for a long time.