'Craft' beer tax to be Fed Election issue

[Feldon]

Forget climate change, gay marriage and Putin-bashing; this should be the political battleground of the next Fed Election.



Craft beer industry slugged with 'outdated' tax 'from another era', brewers fight Government for fairer deal
ABC News, 17 Mar 2017

Australia's booming craft beer industry is demanding a fairer deal from the Federal Government, saying the current tax regime is holding it back.

The number of craft breweries has more than doubled in the past five years to over 400 nationwide.

Despite standing out as a bright spot in the flailing manufacturing sector, craft brewers say they are being hurt by Australia's two-tier beer tax regime.

"It's just crazy, it's outdated, it's from another era," Willie the Boatman brewery co-owner Pat McInerney said.

The tax office slugs brewers based on how much pure alcohol is in their beer.

Pure alcohol is taxed at about $34 a litre if full-strength beer is sold in a 50 litre keg.

The identical beer in smaller packaging, such as bottles or more compact kegs, attracts an excise of $49 per litre.

Boutique breweries say they want to supply restaurants and bars with smaller kegs, providing fresher beer and allowing venues to rotate their selection, but say the discrepancy makes it uneconomical.

"The fact that we are unable to sell a 30 litre keg at the same tax rate as a 50 litre keg is ridiculous," Mr McInerney said.

(more at: http://www.abc.net.au/news/2017-03-17/craft-beer-industry-fights-for-fairer-tax-regime/8365450 )

 

[Yob]

even mead attracts a WET..

dafuq...

system is well ****** up

 

[Bonenose]

Now that is UN-AUSTRALIAN!!!!

 

[ScottyDoesntKnow]

I think America has done something similar, or they are trying to anyway. I love the idea of having breweries local to your area competing with each other and being able to make a fair profit. It means both the consumer and business win. I imagine the current tax has kept a huge number of great beers in brewers garages instead of out in the public where they should be.

 

[Stouter]

If it's making someone money, the government wants a slice.
No doubt though that slice needs to be fair and equitable.

 

[Stouter]

I think America has done something similar, or they are trying to anyway. I love the idea of having breweries local to your area competing with each other and being able to make a fair profit. It means both the consumer and business win. I imagine the current tax has kept a huge number of great beers in brewers garages instead of out in the public where they should be.

The craft brewing doco on Netflux, Craft Nation might be, that showed how the seppos changed things for the better in their local community and economies with craft brewing and tap rooms. Certainly a flow on effect and better employment opportunities than the large breweries. There was parts also regarding the taxes and restrictions where one state didn't allow tap room sales, etc. Interesting watch.

 

[mtb]

Crafting A Nation. Looks like a good watch

 

[TheWiggman]

I'm fine with tax as long as there is a reason for it. I get that alcohol is taxed because by and large alcohol is a huge issue in society. Drink driving, alcoholism, domestic and public violence, a drain on the health system etc. so making it less affordable theoretically reduces the impact that this will have. Without it much of those issues would be eliminated or greatly alleviated. And yes I acknowledge alcohol would likely be substituted for another substance, and there are other influences, but there is a fair reason it is taxed. How much it is taxed is another story...
"The fact that we are unable to sell a 30 litre keg at the same tax rate as a 50 litre keg is ridiculous," Mr McInerney said." - completely agree. Is society better off because a beer tapped from a smaller keg costs more? Will it improve public health because the larger kegs are more affordable? If there's no logical reason, I can't see why a different tax rate should exist.

 

[good4whatAlesU]

Hmmmm I wonder if we check the political party donations list and see how much is coming from CUB and Kirin?...

When the Prime minister gets the obligatory "photo shoot' at the Local pub' I bet it's better for votes if he's not at a swanky bearded hipster bar.

 

[Stouter]

With the reportedly rising influence of minority parties maybe there's an opening for something like the Fishers Shooters Farmers Party.
We could call it the Crafties Brewers and Pissheads Party.

 

[wide eyed and legless]

I don't think either party is interested in forming any policies, with the party leaders we have they are more interested in 'one upmanship' and if Turnbull so much as mentioned a tax cut, Shorten will oppose it. (as in company tax)

 

[madpierre06]

Hmmmm I wonder if we check the political party donations list and see how much is coming from CUB and Kirin?...

When the Prime minister gets the obligatory "photo shoot' at the Local pub' I bet it's better for votes if he's not at a swanky bearded hipster bar.

This is the sting in the tail.......

 

[knot_gillty]

With the reportedly rising influence of minority parties maybe there's an opening for something like the Fishers Shooters Farmers Party.
We could call it the Crafties Brewers and Pissheads Party.

Or hit up these smaller parties regarding your objection/concerns to the tax. Most of these smaller parties (SFFP, LDP etc) love nothing more than objecting against something the government of the time is proposing/doing.

 

[mash head]

Doesnt seem to mention that small breweries get a fair chunk of their excise back, apparently under the wet tax if you make less than a set amount you dont even need to pay. I feel sorry for the boutiqe distillers who have to pay **** tonnes of excise. Next time you look at a boutiqe bottle of spirits and scoff at the price know that something like $30-40 is tax. I know a bloke who makes gin and that is what he tells me.

 

[wereprawn]

I really doubt the huge alcohol tax slows down hardcore pissheads anyway . Just less food on the table ect, for their children .

 

[mtb]

I really doubt the huge alcohol tax slows down hardcore pissheads anyway . Just less food on the table ect, for their children .

Completely OT wereprawn, but I have to ask, is your profile photo a t-rex being shagged by a naked dude?

Back on-topic, I think the issue being described is more to do with the tax's effect on craft breweries than consumers. Most pissheads I know prefer megaswill because they value quantity over quality.

 

[wereprawn]

Completely OT wereprawn, but I have to ask, is your profile photo a t-rex being shagged by a naked dude?

Back on-topic, I think the issue being described is more to do with the tax's effect on craft breweries than consumers. Most pissheads I know prefer megaswill because they value quantity over quality.

Yes it is. :blush:

 

[mosto]

Forget climate change, gay marriage and Putin-bashing; this should be the political battleground of the next Fed Election.

Willie.jpg

Craft beer industry slugged with 'outdated' tax 'from another era', brewers fight Government for fairer deal
ABC News, 17 Mar 2017

Australia's booming craft beer industry is demanding a fairer deal from the Federal Government, saying the current tax regime is holding it back.

The number of craft breweries has more than doubled in the past five years to over 400 nationwide.

Despite standing out as a bright spot in the flailing manufacturing sector, craft brewers say they are being hurt by Australia's two-tier beer tax regime.

"It's just crazy, it's outdated, it's from another era," Willie the Boatman brewery co-owner Pat McInerney said.

The tax office slugs brewers based on how much pure alcohol is in their beer.

Pure alcohol is taxed at about $34 a litre if full-strength beer is sold in a 50 litre keg.

The identical beer in smaller packaging, such as bottles or more compact kegs, attracts an excise of $49 per litre.

Boutique breweries say they want to supply restaurants and bars with smaller kegs, providing fresher beer and allowing venues to rotate their selection, but say the discrepancy makes it uneconomical.

"The fact that we are unable to sell a 30 litre keg at the same tax rate as a 50 litre keg is ridiculous," Mr McInerney said.

(more at: http://www.abc.net.au/news/2017-03-17/craft-beer-industry-fights-for-fairer-tax-regime/8365450 )

Absolutely agree that a more equitable tax policy needs to established. On a side note though, whoever is pouring the beer in the video in the link should shot, or at least never allowed near a beer tap again!

 

[BKBrews]

Doesnt seem to mention that small breweries get a fair chunk of their excise back, apparently under the wet tax if you make less than a set amount you dont even need to pay. I feel sorry for the boutiqe distillers who have to pay **** tonnes of excise. Next time you look at a boutiqe bottle of spirits and scoff at the price know that something like $30-40 is tax. I know a bloke who makes gin and that is what he tells me.

The problem is the excise is payable upon packaging the product, prior to even a single bottle being sold - so it's super hard for startups to get off the ground with these huge up-front outlays.

 

[WarmerBeer]

Completely OT wereprawn, but I have to ask, is your profile photo a t-rex being shagged by a naked dude?

That MTB, always asking the important questions.

 

[stm]

Forget climate change, gay marriage and Putin-bashing; this should be the political battleground of the next Fed Election.

Exactly! Something important that helps businesses grow, create employment and create wealth.

 

[JDW81]

I get that alcohol is taxed because by and large alcohol is a huge issue in society. Drink driving, alcoholism, domestic and public violence, a drain on the health system etc. so making it less affordable theoretically reduces the impact that this will have.

I work in a public hospital emergency department. Was there in the wee small hours of Saturday/Sunday/Monday morning.

Treated a stack of people who were well lubricated with various ailments. None of them had been drinking "craft" beer. Quote from one young fella. "what have you been drinking mate"? "Cartlon ****** draft doc, best beer in the ****** world". In fact I've never seen a drunk person who has ended up in ED cause they drank a stack of "insert favourite craft beer here".

I don't think altering the way small producers are taxed will change the social problems caused by alcohol.

I would like to see the little guys get a fair go though.

JD

 

[WarmerBeer]

It would be a totally different emergency situation if you had young guys coming in yelling "West-******-vleteren 12, doc. Best beer on ****** beeradvocate, doc"

 

[JDW81]

It would be a totally different emergency situation if you had young guys coming in yelling "West-******-vleteren 12, doc. Best beer on ****** beeradvocate, doc"

True, but I don't expect I'll be seeing that any time soon though.

 

[mtb]

All that hop oil would put them to sleep long before the real shenanigans began anyway..

 

[yankinoz]

I really doubt the huge alcohol tax slows down hardcore pissheads anyway . Just less food on the table ect, for their children .

The same logic applies even more so for the tarheads. I've never smoked and have compelling personal reasons to despise the habit and tobacco. But I'd protest any further increases in tobacco taxes. It is on the table from time to time.

 

[Sidney Harbour-Bridge]

With the reportedly rising influence of minority parties maybe there's an opening for something like the Fishers Shooters Farmers Party.
We could call it the Crafties Brewers and Pissheads Party.

Have you approached SFFP about joining them, they may be supportive of adding a "B" for brewing to their name but probably not the "P"

 

[Yob]

The problem is the excise is payable upon packaging the product, prior to even a single bottle being sold - so it's super hard for startups to get off the ground with these huge up-front outlays.

not exactly true.. you can, with a LOT of wrangling go to a monthly based excise system where its taxed on sales

 

[malt junkie]

The problem being if I were say to start a "Brewers Party" and put up banners etc, all you bastards would turn up with kegs, bottles of RIS and a gerry rigged 1000L system to brew on.


I know first world problems :huh:

 

[BKBrews]

not exactly true.. you can, with a LOT of wrangling go to a monthly based excise system where its taxed on sales

I actually read up on that yesterday - very interesting.