John Alexander (Bennelong, Liberal Party) Share this | Hansard source

I have invested deeply in beer over the years, and I should have. Endeavour's story is truly one of local success. Starting at a family kitchen table in Ryde, they now run one of the best pubs in Sydney—the Endeavour Tap Rooms at The Rocks. Hopefully, the coming years will see them expanding locally and bringing great things to our part of the world.

For any members who attended the Bennelong Innovation Fair—and you would be silly if you did not—in the Great Hall, this would have been a chance to sample this great beer. Owner and founder, Ben Kooyman, was at the door presenting a sample of his great beers to everybody who entered the room. Anyone who did so will agree that this is a great beer, and that we have quality over quantity. Beyond Bennelong, however, the independent brewing industry is going gangbusters in Australia. There are now more than 420 independent brewing businesses in Australia, up from 200 in 2013. In the last financial year the industry directly employed 2,100 full-time workers while supporting 15,000 positions in the broader economy. While they produce just three per cent of the nation's beer, the workers employed represent 65 per cent of all those employed in the brewing industry. They also generated $655 million in economic output.

In September last year IBISWorld conducted a study of independent breweries in Australia. They predicted that independent brewing enterprises were forecast to grow at 11 per cent over the coming decade. They also found that consumption of full-strength traditional beers has been in steady decline over the past five years, purely because drinkers have switched to the premium and independent beers. And they expect exports to grow at 2.5 per cent over the next five years, largely driven by increased demand for our quality Australian independent beers overseas.

Beyond the financial benefits, local independent brewers play a vital role in our communities. Their smaller reach compared to the multinationals provides a more intense local community engagement. They provide local jobs and are often linked with a tighter community identity. They also have health benefits. Figures suggest that people drinking more flavoursome and interesting beers are less likely to binge drink. Independent brewers really provide a complete package.

It is undeniable that the independent brewing industry is going through an incredible growth and success period, changing the drinking landscape across Australia. This inevitably presents a challenge for government. For decades, legislation has been providing for an environment dominated by big multi-label, multinational brewers and wine producers, so we are having to catch up in this area. But I am happy to say that the government are making inroads on the many new challenges presented by the needs of this new industry. The government provide excise relief to Australian brewers through the brewery refund scheme, which provides eligible domestic breweries a refund of 60 per cent of excise paid up to $30,000 per year. Craft brewers are also supported by the brewery refund scheme and are provided a rebate of 60 per cent, up to a maximum of $30,000—small beer perhaps, but a good place to start.

Additionally, for those companies which fall into the category, many brewers are able to take advantage of the government's new tax breaks and benefits for small business. This means access to the $20,000 asset write-off, through which they can immediately deduct assets costing less than $20,000 each that were purchased in the last financial year. We have also cut the tax rate to 27.5 per cent, the lowest level in 50 years. While currently this applies to small businesses, it will relate to all companies with a turnover of under $50 million by 2018.

To conclude, our independent brewing industry is a shining light in our community. I congratulate all local brewers for bringing jobs, happiness and community spirit into our regions. I must say, though, as an elite athlete often competing in the most testing heat, my training made me vitally aware of the importance of maintaining hydration. That is why I always keep handy my favourite fluid loss replacement, Endeavour Pale Ale. Be there or be square!

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