Statement by Spirits & Cocktails Australia Executive Director, Steven Fanner:
We are concerned that high excise rates, equating to more than $30 on a standard 700mL bottle of spirits, combined with loose controls around alcohol producer tax breaks, are creating an environment that risks incentivising demand for tax-free alcohol and opportunistic behaviour.
Despite having some of the highest spirits taxes anywhere in the world, Australia is beginning to see significant quantities of tax-free alcohol being sold to retail outlets and venues below the cost of the excise paid by legitimate producers.
Tax-free alcohol distorts the market, as genuine spirits producers are required to pay more than $30 per bottle to the Government in excise.
The Alcohol Manufacturers Remission Scheme, administered by the ATO, is intended to support craft distillers and brewers to grow, create regional jobs, and support Australian manufacturing and tourism. Under the scheme there is no excise payable on roughly the first 8,500 litres of spirits sold.
The remission scheme has been a catalyst for growth within Australia’s distilling industry, but the industry has long been warning Government about unintended consequences of taxpayer funds being redirected to organisations that have no intention of building a spirits brand and investing in the Australian distilling industry.
We want to see a transparent, high-integrity system that protects taxpayers and gives the Australian spirits industry the certainty it needs to grow jobs, grow tourism and reach its full potential. At the moment we seem to have benefits intended for spirits producers going to middlemen and wholesalers who aren’t producing anything.
Contact:
Steven Fanner
Executive Director
Spirits & Cocktails Australia
0402 913 603
