Bridget Archer (Bass, Liberal Party) Share this | Hansard source

It's no secret that Tasmania is leading the charge when it comes to topnotch distillery products in the Australian market, as evidenced by the number of my fellow Tasmanians speaking on this motion, and I commend the member for Clark for bringing it forward. There are now over 300 locally owned distilleries spread across the country, 52 of which are situated in Tasmania, producing some of the best whisky you can find. That's not bias; a number of Tasmanian distillers have been named the best single malt whiskies in the world. In my electorate of Bass there are eight incredible locally owned distilleries taking the market by storm. I can stand by their products as I can proudly state I have tried the wares of each of the following local distillery companies: Abel Gin, Corra Linn, Darby-Norris, Fannys Bay, Flinders Island, Furneaux, Tamar Valley and Turner Stillhouse. I note that 65 per cent of Australian distillers are in regional and rural areas like northern Tasmania, bringing economic benefits through farm production, manufacturing, regional tourism and hospitality.

Our government has implemented a number of measures to support our country's growing distilling industry, including the measure which will see, from 1 July this year, alcohol manufacturers automatically receiving excise duty remissions when they lodge excise returns, assisting with cash flow and reducing compliance costs. This builds on the government's decision to extend the excise refund scheme to distillers from 1 July 2017. Under the scheme, eligible manufacturers of alcoholic beverages can claim a refund of 60 per cent of the excise duty paid on the products. From 1 July 2019 the cap for the scheme was increased from $30,000 to $100,000. Additionally, in December 2020 the government announced simplifying and streamlining the excise regime would be a new priority area for the Deregulation Taskforce. The task force is working to make it easier for business to invest and create jobs as well as assist in COVID-19 recovery.

However, a significant block towards further economic growth of this industry still exists due to the current high rate of the spirits excise tax. Australia currently has the third-highest spirit tax in the world, with spirits taxed four times more than wine and cider and double the tax paid by brewers, disproportionately impacting spirit producers. I believe an opportunity exists to look at reducing the current rate of the spirits excise, even by a moderate amount, which would provide our distillers with the confidence to reinvest in their businesses and create further jobs in the hospitality and regional tourism industries, two industries that were hardest hit by the pandemic. According to the Tasmanian visitor survey in 2018, more than 126,000 people visited a Tasmanian distillery. Whilst visitor numbers may have been recently impacted by COVID restrictions, it is a growing market. Further, a modest reduction in the rate would support additional industries, including agriculture and advanced manufacturing. From the discussions I have had with local distillers, a rate reduction would have a significant positive impact on their business and growth potential.

I have also had recent discussions with local microbrewers, including Will Egan, a local microbrewer and co-host of Tasmanian beer podcast Beer Babies. I was recently invited onto the Beer Babies podcast to discuss, in addition to my favourite local beer, Little Rivers pale ale, the issues currently facing small microbreweries in the state. Whilst this industry is not as severely affected by the excise tax to the extent distilleries are, they are still challenged by the current rate of excise tax. I look forward to raising their concerns further with the relevant ministers.

Lastly, as we all know, this week marks the ominous one-year anniversary since the first round of social restrictions came into effect, including the shutting of pubs and clubs across Australia. Lion, owner and operator of the iconic Boag's Brewery in northern Tasmania, has anointed tomorrow, 23 March, National Local Day to recognise the resilience of our pubs and clubs over the past 12 months. If you can, hit up your local establishment tomorrow and order a locally produced beer or spirit and show your support for your local hospitality and beer or spirit producer.

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