At the end of January 2023, we lodged a joint Pre-Budget Submission, with our colleagues from Spirits and Cocktails Australia, for consideration ahead of the 2023-24 Federal Budget.

A highlight of the 2022 Annual conference was the introduction of the Hall of Fame to acknowledge and celebrate the significant contributions of members in advancing the growth of the Australian spirits industry.

In the lead up to the Annual Conference and to kick start engagement with 2023, a series of member communications have been produced. We produced a hard copy of a “Thank you for being a member”.

Spirits and Cocktails Australia chief executive Greg Holland described the excise hike of 3.7% as a “cruel blow” for an industry already hit hard by high inflation.

Our submission calls on the Government to make modest changes to Australia’s spirits tax regime – by reducing the spirits excise rate and freezing CPI indexation – to create the conditions for the sustainable growth of the Australian spirits industry.

ATO Notice: Your alcohol excise duty rates will increase from 1 February 2023.

The significant concern for our members is that our competitors may be making a product that looks like an RTD in the consumer eyes but is only taxed at the beer concessional rate and is thus significantly cheaper than our members spirits based product.

The draft Ruling sets out the Commissioner’s view of the meaning of ‘legally and economically independent’ for the purposes of the ‘excise remission scheme for manufacturers of alcoholic beverages’ (Remission Scheme) and the ‘excise refund scheme for alcohol manufacturers’ (Refund Scheme). The Remission Scheme replaced the Refund Scheme for eligible alcoholic beverages that entered home consumption on or after 1 July 2021.

Environment Ministers are considering expanding the Container Deposit Scheme to include full bottled spirits. Consultation is currently open in NSW and WA. QLD and ACT will begin public consultation soon. SA has already closed consultation.

Recently the Economic Society of Australia published an article about the Australian alcohol tax system and the modelling of harm for various types of beverages. It notes that regular and mid strength beer is under taxed, and pre-mixed spirits in a bottle (but not a can) may be overtaxed.

Many of the reforms are for new licence applications and amendments, streamlining processes and transparency and improving the consultation process for community stakeholders.

The Victorian Government has announced, they will extend the Victorian Distillery Door Program for an additional 2 years.