This week’s Federal Budget, handed down by the Albanese Government has failed to propose any new direct support to Australia’s independent brewing industry, but the Independent Brewers Association (IBA) is hopeful it might offer a glimmer of hope.
The pre-Budget announcement to freeze the indexation of excise on draught beer from 1 July 2025 was confirmed, as was the $50,000 increase in the remissions cap from 1 July 2026.
While these are a step in the right direction, the IBA emphasised its stance that many independent breweries need more immediate help and that the excise freeze will not benefit many because of tap contracts.
At the time, IBA CEO Kylie Lethbridge said: “We, of course wish that these were more immediate and applied to all beer as we know they will not be enough to prevent some of the smallest independent breweries from closing.
“It is clear that Prime Minister Albanese is looking to find ways to provide relief and we thank him for that – but at the same time, look forward to a commitment to more meaningful change to our unfair alcohol tax regime and initiatives that would support Australian-owned small brewing businesses.”
The IBA also said it was “at a loss” as to why a review into the beer industry was not funded in a Budget that was seemingly focused on supporting small businesses and increasing competition.
Although there was disappointment at the lack of direct support for independent breweries, the IBA did say there was a glimmer of hope that some of the Budget announcements will ultimately benefit the sector.
The Government appeared to implement some of the recommendations from the supermarket inquiry by committing to a funding boost of $38.8m to the Australian Competition and Consumer Commission (ACCC) to crack down on misleading and deceptive pricing practices and unconscionable conduct in the supermarket and retail sector.
The IBA said that while the supermarket inquiry did not encompass the alcohol retail sector, the inclusion of the broader retail sector in the ACCC funding “gives room for hope”.
Lethbridge said: “We will be the first ones knocking on the door of the ACCC ensuring that some of the funding they have been allocated goes to addressing the shocking market conditions in the beer industry.
“Never has there been a point in time where so many federal inquires have made recommendations to address our issues – and we will be holding any future Government’s to account for those recommendations.”
The IBA also welcomed the Government’s commitment to work with states and territories to extend Unfair Trading Practices protections to small businesses.