Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

Rebekha Sharkie asked the Assistant Treasurer, in writing, on 2 December 2019 -

(1) Are the maturation requirements for rum, whisky and brandy in Section 77FI of the ExciseAct 1901 a barrier to entry for small distillers; if not, why not.(2) What is the policy rationale for the maturation requirement.(3) Have changes to distilling practices reduced the relevance or necessity for these maturation requirements; if not, why not.(4) Has Treasury considered, or consulted on, proposals to amend these maturation requirements to assist craft distilleries to enter the market.

Michael Sukkar (Deakin, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

The answer to the honourable member's question is as follows:

1) The Government has recently enacted a number of measures to extend support to craft distillers. From 1 July 2017, the Government extended the brewery refund scheme, to also include domestic spirit producers and distillers. This expanded scheme allows both brewers and distillers to claim a refund of 60 per cent of the excise duty they have paid, up to an annual cap. From 1 July 2019, this cap was increased from $30,000 to $100,000 per financial year.

2) The requirement for rum, whisky and brandy to be matured for two years in wood barrels prior to its sale in Australia is a long standing policy that ensures a minimum standard of quality.

3) This question is best directed to the Minister for Industry, Science and Technololgy.

4) There are currently no plans to amend the two year maturation requirement.