Australia: Australia’s independent brewers advocating for excise reform

In its Budget submission earlier this year, the Independent Brewers Association (IBA) described the environment for independent brewing as “dire”, and just last month, the industry was hit once again with a bi-annual tax increase, Beer & Brewer reported on September 12.

Paired with increased production costs and legacy tax debt to name a few, these pressures are causing craft breweries to enter administration or close their doors at an alarming rate, while others struggle to stay afloat.

But, despite the challenging outlook for the industry, independent breweries nationwide are taking action.

A statement issued yesterday by the IBA said independent breweries have spent the last few months meeting with MPs and advocating for excise reform, and MPs from New South Wales, Queensland and Western Australia, who have been invited into venues, have agreed on the need for reform of the excise regime.

Such advocacy hopes to drive conversation in Parliament, and earlier this week, Cameron Caldwell MP spoke to the House of Representatives about the challenges faced by Australian small and family businesses, which he described as the lifeblood of our economy and essential to our way of life.

“These businesses are at breaking point, struggling under the weight of policies and red tape that seem to disregard their contribution to our communities,” he stated.

More specifically, Caldwell went on to voice his concerns about the future of the brewing industry to the House of Representatives.

“Black Hops Brewery in Biggera Waters, who I recently visited, are barely surviving. They have been through the ringer. Firstly, they survived Covid, but now we see supplier prices going up, they pay a container tax on every can that leaves their door, and of course, the dreaded alcohol excise, that has just gone up and up and up,” he explained.

“They’ve just come through administration, let’s hope that this time around they can make a go of it. If not for the owners of the business, for the 80 employees of the business, the ones that take that pay packet home to their families, to feed them and to house them.”

In its statement, the IBA said: “The IBA are keeping our foot on the gas when it comes to advocacy, and we know our members are doing the same – change takes time, but collective action works. We’re entering the next Federal Election season and all of our voices have never been more important.”

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