Excise rates for small breweries

By Brett Stubbs from Southern Cross University

Small breweries problems with excise in Australia

Small breweries help Australia

Of the 103 new breweries opened in Australia since 1984 only 59 are still in operation. This is not a great success rate. In addition, the big brewers have become involved in running new small breweries and in the establishment of new pub breweries. (Brett Stubbs from Southern Cross University) nother related tactic of the big breweries is the production of small runs of special or seasonal beers. These tactics are tending to cut ground from under the small independent breweries by accommodating the consumer demands that give rise to the small independent breweries in the first place. (Brett Stubbs from Southern Cross University)

First, a government brewery was set up in Sydney in 1802 in an attempt to bring beer into more general use in the community in order to lessen the excessive and unhealthy consumption of spirits. (Brett Stubbs from Southern Cross University)

Second, in 1892 when the Victorian government imposed an excise on beer, it imposed a lower rate on beer made only from barley-malt and hops. The purpose of this policy was to encourage the consumption of all-malt beers that were considered healthier than the commonly consumed sugar beers. This distinction between all-malt and malt-and-sugar beers continued in the Commonwealth excise act in 1901 and remained until 1918. (Brett Stubbs from Southern Cross University)

Finally, prior to 1973 home brewing was effectively illegal in Australia, effectively because it had to contain less than 1.15% alcohol by volume to avoid the payment of license and excise fees. In 1973 the federal parliament passed changes to the Excise Tariff Act that exempted home-brewed beer of all strengths from the payment of excise, provided it was for private consumption. Notably, this legalisation drew the protests of the big brewers at the time. (Brett Stubbs from Southern Cross University)