Australian booze prices to drop as producers handed big tax cut

Cheaper beer at last! Australia’s world-topping booze prices are finally set to drop with producers handed a big cut to their enormous alcohol tax burden

  • Government announced tax cuts of up to $250,000 a year for liquor producers
  • The move will come into effect from July 1 and will be unveiled in Federal Budget
  • Treasurer Josh Frydenberg said it will benefit smaller brewers and distillers

Booze prices are set to tumble around Australia as alcohol producers are handed a tax cut to boost the hospitality sector’s recovery.

Australian drinkers have long endured some of the most expensive pints in the world, with Perth ranking second only to Oslo, due to enormous taxes. 

But on Saturday the federal government announced tax cuts of up to $250,000 a year for liquor producers hit by coronavirus.

The move will come into effect from July 1, and will be unveiled when the federal budget is handed down later this month.

The move will come into effect from July 1, and will be unveiled when the Federal Budget is handed down later this month

Under the changes, the first $350,000 will be remitted by the government

Under the changes, the first $350,000 will be remitted by the government

Producers will be allowed to sell triple the amount of alcohol before being required to pay excise tax, reducing their overall tax burden.

The government rebates brewers and distillers up to 60 per cent of their tax money when their product leaves the warehouse, up to a cap of $100,000.

However, under the changes, the first $350,000 will be remitted by the government, the Daily Telegraph reported.

The tax cuts will be worth $255 million a year to the liquor industry. 

Treasurer Josh Frydenberg said the tax cut would greatly benefit smaller brewers and distillers, which move smaller volumes and may fall under the cap.

‘Australian brewers and distillers are world leaders in their field and this measure is going to assist them to continue to invest, grow and create jobs,’ he said.    

Four Pillars Gin boss Stuart Gregor said the boost for the sector was welcomed by liquor producers. 

‘It’s also a great day for drinkers in Australia because it will give the distillers of Australia a better chance to get their drinks into the bars, clubs, hotels of Australia,’ he said.

‘If they’re particularly small they might be able shave a couple of bucks off the price (and) it probably means they won’t have to raise their prices.’

Treasurer Josh Frydenberg said the move will greatly benefit smaller brewers and distillers

Treasurer Josh Frydenberg said the move will greatly benefit smaller brewers and distillers