Tasmania’s craft breweries are part of a national push for the federal government to standardise rates of beer taxes.
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The current rate of excise sees a keg of up to 50 litres with an alcohol volume of between 3 and 3.5 per cent taxed at a rate of $48.57. In contrast, a keg over 48 litres is taxed at just $26.12.
Craft brewers say the difference costs them an inordinate amount of money that could be spent employing and training workers, investing in brewery infrastructure, or developing tourism opportunities.
Van Dieman craft brewery founder Will Tatchell said the two-tiered excise system, combined with the costs of freight to the mainland, meant Tasmanian brewers were less competitive outside the state.
“From a purely cashflow point of view, we’re looking at $15,000 a month in excise, and that’s on what we sell,” he said.
“We pay that on a monthly basis. If a venue or operator doesn’t pay their bill inside their terms … as a small business that really hurts us.”
Van Dieman brewery produces both 30 and 50-litre kegs, meaning Mr Tatchell spends hours each week calculating the differing rates of excise and working through the reporting paperwork.
“It was hard in our infancy to sell a 50-litre keg to a venue, compared to a 20 or 30-litre keg,” he said.
“There’s just less risk for the venue in a 30-litre keg compared to a 50, but ... the limitations that occur with that 30-litre keg make us want to push the 50-litre keg.”
But Mr Tatchell said he’s prosaic on the chances of a tax on alcohol being reduced, and said the best chance for craft breweries was seeing more people purchasing and consuming their beers responsibly.
Federal opposition tourism spokesman Anthony Albanese and Labor MP Joel Fitzgibbon have joined the brewers in their campaign.
Last week Mr Albanese and Mr Fitzgibbon lodged a private member’s motion in parliament urging the government to better support the craft beer industry.
Craft Beer Industry Association executive officer Chris McNamara said there was a “huge disparity” between the excise rates on Australian-made wines and beers, and available rebates.
“The [wine equalisation tax] is anywhere up to $500,000 ... but ours is maxed out at $30,000,” Mr McNamara said. The federal government was contacted for comment.