Australian drink prices are falling as producers pass major tax cuts

0

Finally cheaper beer! Australia’s world top drink prices will finally fall as producers cut their massive tax burden on alcohol

  • The government announced tax cuts of up to $ 250,000 per year for beverage manufacturers
  • The move will take effect July 1 and will be disclosed in the federal budget
  • Treasurer Josh Frydenberg said it will benefit smaller brewers and distillers

Drink prices will fall in Australia as alcohol producers get a tax cut to spur the recovery of the on-trade.

Australian drinkers have endured some of the most expensive pints in the world for a long time, with Perth taking second place after Oslo due to massive taxes.

But on Saturday, the federal government announced tax cuts of up to $ 250,000 per year for beverage manufacturers affected by the coronavirus.

The move will take effect July 1 and will be revealed when the federal budget is transferred later this month.

Drink prices will fall in Australia as alcohol producers get a tax cut to spur the recovery of the on-trade

Australian drinkers have endured some of the most expensive pints in the world for a long time, with Perth in second place after Oslo due to massive taxes

Australian drinkers have endured some of the most expensive pints in the world for a long time, with Perth in second place after Oslo due to massive taxes

Producers are allowed to sell three times as much alcohol before they have to pay excise duty, reducing their overall tax burden.

The government refunds brewers and distillers up to 60 percent of their tax dollars when their product leaves the warehouse, up to a maximum of $ 100,000.

However, under the changes, the first $ 350,000 will be transferred by the government, the Daily telegram reported.

The tax cuts will be worth $ 255 million a year to the beverage industry.

Treasurer Josh Frydenberg said the tax cut would bring many benefits to smaller brewers and distillers, moving smaller volumes and potentially falling below the limit.

“Australian brewers and distillers are world leaders in their fields and this measure will help them to continue to invest, grow and create jobs,” he said.

Stuart Gregor, boss of Four Pillars Gin, said the boost to the industry was welcomed by beverage companies.

“It’s also a great day for drinkers in Australia as it will give Australia’s distillers a better chance of getting their drinks into Australia’s bars, clubs and hotels,” he said.

“If they’re particularly small, they might be able to shave a few dollars off the price (and) it probably means they don’t have to raise their prices.”

On Saturday, the federal government announced tax cuts of up to $ 250,000 per year for beverage manufacturers affected by the coronavirus

On Saturday, the federal government announced tax cuts of up to $ 250,000 per year for beverage manufacturers affected by the coronavirus

Under the changes, the first $ 350,000 will be remitted by the government

Under the changes, the first $ 350,000 will be remitted by the government

Advertisement

.