Dick Adams (Lyons, Australian Labor Party) Share this | Hansard source

I have moved this motion on microbrewing in Australia because I believe that, if we are to promote innovation in Australia, we need to allow microbrewers to compete on an equal footing with boutique wineries. These microbrewers are suffering disadvantage because they have to pay considerably more tax than the equivalent small wineries. I do not believe that they are asking for special treatment. They just need to be treated equally to similar boutique-type alcoholic drink producers. These products are outside the argument on alcopops as they are in an expensive boutique bracket not for bulk buying or aimed at the young.

The main concern of the microbrewers can be considered as being the complexity and the inequity of the taxation system in relation to alcoholic beverages. These businesses are based in rural and regional Australia in the main. There is a high excise burden on those small businesses, which are trying to encourage work and development in these areas. There is an inequity in the taxation on beer produced by small brewers compared with wine production by small wineries.

As far as I know, there are seven microbrewers in Tasmania and they are value-adding to their farm produce. We are asking our primary producers to do more before their produce leaves the farm gate, to add value to their product and this is what these microbrewers are doing in many cases. Some attach their brewing operations to primary production and normal farm activities, including growing beef and crops. There is a honey producer who has been involved in the development of bees and pollination. Another microbrewer has joined in the development of a beer product with an already successful winery. Another is developing a microbrewery along with a tourism activity while another has a brewery, a meadery and a hop garden—all very productive, innovative projects adding to the Tasmanian economy.

Microbrewers also add to the tourist experience of specialised products which can be taken around the world, spreading the word of Tasmania’s excellence in all we put our hand to. Microbrewing is a welcome addition to the tourist push for Tasmanian fine foods and wines and will be just as advantageous as for other parts of Australia well known for their premier fine food and wine. This government is currently providing assistance to a maximum of $10,000 to microbrewers producing less than 30,000 litres. However, most microbrewers exceed this quantity in annual production and therefore do not receive a subsidy.

According to the Association of Microbrewers, 84 breweries currently operate in Australia and the sector is making a $295.5 million contribution to the government through excise tax. This is estimated to rise to $783 million by 2010. I would like to see the government review the excise regulation to work out a proposal for an excise tax refund on the microbrewers’ product so that the current maximum rebate of $10,000 is increased to the same maximum amount as the wine industry producers rebate, a sum of $500,000 per annum, or about 60 per cent of the excise duty paid. The definition of a microbrewer caps production at 30,000 litres, and that should be removed from the regulation. It is worth noting that the wine industry producer rebate has increased on several occasions since 1999 but that the beer excise rebate has not been revisited in 11 years. It is about time to review it again. This would bring equality into the system, would encourage existing and new producers to further develop enterprises involving craft beers and would help rural and regional Australia.

In the five minutes allocated to me, it is hard to fully explain the potential of this industry. It would provide substantial employment growth in rural and regional Australia, as well as allowing entrepreneurs among primary producers to gain a worldwide reputation for their quality beer production, along with, of course, quality wine. I will continue working to get equity for my growers and brewers at this time of belt tightening for our local producers all over the country. (Time expired)

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