THE Hunter’s burgeoning craft beer scene is part of a national brewing success story stymied by an outdated tax regime, member for the Hunter Joel Fitzgibbon has told federal parliament.
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Mr Fitzgibbon and Labor colleague Anthony Albanese lodged a private members’ motion this week calling on the government to “ensure policy settings” that will encourage craft brewers.
They also urged state and local governments to tailor planning and development controls more favourably for craft beer ventures.
“The current tax arrangements are a hangover from John Howard’s scramble to make sure beer didn’t get put under the GST. They’re unfair, and they’re skewed against the craft beer brewers,” Mr Fitzgibbon said.
“There are a number of craft brewers in my electorate, and I believe there’s a great opportunity to further diversify our tourism sector.”
Among brewers’ grievances is Australia’s two-tiered beer taxation, where pure alcohol is taxed at about $34 a litre if beer is sold in 50-litre kegs.
Beer sold in cans, bottles or smaller kegs – packaging more conducive to craft offerings – incurs an excise of $49 a litre.
“For slower venues or bigger alcohol beers, the cost becomes prohibitive,” Lachlan Macbean, founder of Newcastle’s Grainfed Brewing Company, said.
“Everything has to be in 50-litre kegs.”
Mr Macbean said excise accounts for about a third of his production costs.
Many brewers are frustrated, he said, that wine producers can claim back $500,000 annually under the Wine Equalisation Tax rebate, while they can only claim $30,000 in excise.
“If they brought up the brewers’ rebate to the same as the winemakers’, I could potentially build my own brewery and employ people. They’re stifling economic and tourism opportunity,” Mr Macbean said.
“In Newcastle we punch pretty well above our weight with craft brew taps, but beer seems to get a bad rap. We are a beer town.”
Asked if he supports a flat excise on beer, Mr Fitzgibbon said his motion with Mr Albanese was to “initiate processes” by which the policy settings around craft brewing can be examined.
Mr Fitzgibbon said he has been impressed by the boutique brew tours offered in Mr Albanese’s inner-west Sydney electorate of Grayndler – a trend he hopes will catch on in the Hunter.
