The federal government announced it would increase the amount brewers and distillers could claim back and extend the concessional draught beer excise rate to smaller kegs used by craft brewers.

Small brewers will also now benefit from an increase in the alcohol excise refund scheme cap from $30,000 a year to $100,000.

Independent Scottsdale brewery Little Rivers Brewing Company was established four-and-a-half years ago and produces around 100,000 litres of beer annually.

Assistant brewer Josh Whelan said the tax reform would help the small business significantly.

“I think it’s a great idea for the breweries. We do cop a fair tax hit on beers, especially being a craft beer,” Mr Whelan said.

“If you have high percentage beers you have to pay a lot of tax on them so I think it is a really good thing for the government to help us out a little bit, especially as there’s lot of breweries starting to open up. It will obviously help sustain us for a lot longer.

“You had to pay a lot more excise on the 20-litre kegs,” he said.

The craft brewing industry had been agitating for this tax reform for some time.

“A couple of the politicians came around to the brewery and asked questions about what we thought about it six months ago. They’ve obviously listened to the people at the breweries and are taking action, which is good,” Mr Whelan said.

Little Rivers Brewing Company produces Dorset Lager, standard pale ales, golden ales and specialty beers throughout the year based on the weather, such as darker beers in winter and lighter brews for summer.

When announcing the excise tax reform on Friday, federal Treasurer Scott Morrison said this allowed craft breweries to compete on fairer terms.

“The extra help to craft brewers and distillers will drive competition in a sector currently dominated by large domestic and multinational brewers, opening the door to new products and will likely put downward pressure on prices,” Mr Morrison said.