Craft brewers and distillers will no longer pay additional tax, enabling them to compete on fairer terms with large beverage companies.
The alcohol excise refund cap will increase from $30,000 a year to $100,000 from July 1 next year for all brewers and distillers.
Pearce MHR Christian Porter said the decision would benefit many local producers in the Swan Valley.
“This is terrific news for the craft brewers and distillers in my electorate who will benefit from the Liberal government’s continued support for Aussie small businesses,” he said.
Swan Valley distillery Old Young’s Hand Crafted Spirits owner and distiller James Young welcomed the announcement.
“Old Young’s currently employs one person to manage the cellar door and tasting room,” he said.
“The increase in alcohol excise rebate will mean that I will be employing at least one, but more probably two, staff in the distillery pretty much on the spot.
“Being able to employ more staff will enable me to create more award-winning spirits and free me up to work on expanding both nationally and internationally.”
Mr Porter said the rebate would allow local distillers to compete with larger companies.
“This extra help to craft brewers and distillers will drive competition in a sector currently dominated by large domestic and multinational brewers, opening the door to new products and will likely put downward pressure on prices.”