Budget predictions of a challenging and uncertain global economy compel the Albanese Government to future proof Australian trade by diversifying exports, the spirits industry says.
Spirits & Cocktails Australia chief executive Greg Holland said the 2025–26 Budget bolstered the case for Government intervention to unlock the $1 billion export opportunity that has been identified for Australian spirits.
“While we welcomed the Government’s positivity about the domestic economy, we cannot overlook its prognosis of a volatile and unpredictable global economy that guarantees ongoing trade disruption,” he said.
“Against this landscape, growing Australian spirits exports can help the Treasurer achieve his stated ambition of ‘a more productive, dynamic and resilient economy’.”
Holland said the Federal Budget lacked the structural reforms needed to enable the spirits industry to build on its current $15.5 billion economic contribution.
“The Budget has done nothing to rectify the handbrake on our industry in the form of the world’s third highest spirits tax,” he said.
“In fact, the Albanese Government has only exacerbated the structural inequity in Australia’s alcohol tax regime with the draught beer freeze that has been confirmed in the Budget papers.”
Australian Distillers Association chief executive Paul McLeay welcomed the $50,000 increase to the alcohol manufacturers remission threshold, that will provide much needed headroom for Australian distillers to reinvest back into their businesses.
“The uplift in the Alcohol Manufacturers Remission will go most of the way to restoring the value of the scheme in real terms, following rampant inflation since its inception,” he said.
“However, more needs to be done to provide the foundations to support sustainable long-term growth and unleash the industry’s $1 billion export potential.
“This must start with adopting the Spirits Export Accelerator Strategy (SEAS) proposed in the industry’s Pre-Budget Submission,” he said.
“While we admire the Government’s long-term commitments to net zero manufacturing opportunities, we know there is immediate demand in export markets for high quality, differentiated Australian spirits products that value-add to Australian agriculture.”
“SEAS aligns with the Future Made in Australia agenda, boosting domestic manufacturing, while also delivering jobs and growth for regional communities, which is where 50% of Australia’s 700 distilleries are based,” said McLeay.
“As the Government seeks to weather a storm of trade tensions and tariffs, local distillers say it’s time to let SEAS set sail so we can stock the shelves of the world with award-winning Australian spirits.”
ENDS.
Media contact:
James Atkinson, Media & Communications Manager
Email: jatkinson@spiritsandcocktails.au | Mobile: +61 416 870 827
