The Assistant Treasurer, Senator Rod Kemp, today announced arrangements to assist the small brewery industry in the transition to the changes in beer taxation under tax reform.
Under the existing taxation system, small breweries pay beer excise regardless of the size of their production, but do not pay wholesale sales tax (WST) if the WST payable would be less than $10,000 per annum.
From 1 July 2000 new excise rates apply to beer as provided by Excise Tariff Proposal No. 2 (2000).
Since microbreweries do not benefit from the abolition of WST, the Government has decided to introduce a threshold, shading out, to reimburse excise payable on their low production.
This will preserve the competitive position of microbreweries as against larger breweries.
The qualifying criteria for the concession and the phasing out arrangements will be developed further in consultation with the small brewery industry.
CANBERRA
28 June 2000
Media contact: Richard Allsop (02) 6277 7360