Australian distillers to receive AU$50k tax relief

Distillers in Australia will receive an extra AU$50,000 (US$31,658) in tax relief from 1 July 2026.

Currently, Australia’s excise threshold is AU$350,000 (US$221,609), but following the announcement from prime minister Anthony Albanese this will rise to AU$400,000 (US$253,267) from 1 July 2026.

The news has been welcomed by the country’s spirits industry. Kristy Lark-Booth, president of the Tasmanian Whisky and Spirits Association and founder of Killara Distillery, said the financial boost comes at a time “when it is needed most”.

Tasmania is home to 77 distilleries.

She added: “AU$50,000 will provide much-needed headroom for Tasmanian whisky and spirits producers to continue investing in their businesses and laying down barrels to support the growth of the industry, both at home and abroad.

“We know that Tasmania produces some of the world’s most distinctive spirits, and there is huge scope to create a thriving export industry to rival the likes of more established distilling industries in Japan, Ireland and the USA.”

The increase follows last week’s recommendation of the formation of a Spirits Australia trade body to support the industry, after a parliamentary inquiry.

Many key figures in the industry have stressed that Australian spirits could provide a AU$1 billion (US$635 million) export opportunity by 2035.

The country’s high spirits tax – which increases twice a year – has been called “by far the number-one challenge” its spirits industry faces.

More needs to be done

There are more than 700 craft distillers now operating in Australia, half of which are located in regional and rural areas. In 2014, there were just 28 distilleries.

Australian Distillers Association chief executive Paul McLeay said while the benefits will flow to these distillers, “more needs to be done”.

He explained: “88% of Australian distillers are small businesses and today’s announcement means they can continue investing in enhancing production, supporting regional employment and providing unique destinations for tourists.

“We recognise the additional funding announced today for Austrade to help the industry realise its export potential, but we know that more needs to be done.

“Research shows that with the right settings and support, Australian spirits exports can grow to be worth AU$1 billion [US$634.5m] in trade value within the decade.

“That’s why we’ve called on the government to adopt our Spirits Export Accelerator Strategy to provide the necessary infrastructure to up-skill distillers and protect the integrity and reputation of Australian spirits in export, ensuring the right checks and balances are in place before product leaves our shores.

“We know that with this support, we can build on the Albanese Government’s objectives of growing domestic manufacturing, diversifying exports and supporting regional communities. We look forward to continue working with the prime minister and his team to realise this potential.”

Earlier this month, legislation was passed through Australia’s Northern Territory (NT) parliament to formally repeal the minimum unit pricing (MUP) for alcohol.