From Cam Hines (Mountain Goat Brewery This e-mail address is being protected from spambots. You need JavaScript enabled to view it )

Below is draft letter to MP's that microbreweries can use as a template for contacting federal members again.

Draft Letter

[Date]

[Address]

Dear [ ],

Re: Update on WET Equity Proposal

Last year I contacted you about the microbrewing industry’s WET equity proposal to provide equitable treatment of small wineries and small brewers.

Australia’s microbrewers are continuing to seek support for the excise treatment of the beer industry to be made equitable with that provided to the domestic wine industry. As you may be aware the WET equity proposal is for a beer excise refund at the same rate as the Wine Equalisation Tax producer rebate of $500,000.

The WET equity proposal is that the current excise rebate of a maximum $10,000 (Regulation 50(1)(zzd) of the Excise Regulations) for what is now effectively home or hobby brewers and which was established as part of the New Tax System be updated in recognition of how the microbrewing industry has grown, and to foster further expansion and competition in the brewing sector.

Since 1999 the A New Tax System (Wine Equalisation Tax) Act has been updated on several occasions. At the last Federal Budget the WET producer rebate was increased by two thirds to $500,000 per annum in part to quote the Treasurer because the wine industry forms “an important part of regional Australia and provide significant employment and tourism benefits”. The beer excise rebate remains unchanged.

The Australian microbrewing industry have commissioned economic modelling that confirms that adopting the WET equity proposal would provide many flow-on benefits including regional development and tourism plus the financial benefit to Government is estimated to be an additional $13.22 million in taxes, duties & statutory charges by 2010 rather than costing the federal budget.

The majority of microbreweries in Australia are diversified businesses, often offering hotel/pub/bar, restaurant/café, or tourist attraction operations to complement beer manufacturing. Many microbreweries (54%) are located in rural and regional Australia. Most are family businesses independent of the major brewers who dominate the domestic beer industry with whom microbrewers have little in common in size or philosophy.

Australia’s microbrewery sector is estimated to currently make a $295.5 million in total contribution (direct and indirect) to the Australian economy. By 2010 this is projected to increase to $502 million under the current excise environment or $783 million if the excise arrangements are re-structured to be equitable with the WET producer rebate.

Australia’s microbreweries now provide 320 (full time equivalent) jobs. By 2010 this is expected to increase to 575 jobs under the current excise environment or 900 jobs if the excise arrangements are re-structured.

The current excise arrangements are do not assist the growth and profitability of the small brewing sector. By comparison, the majority of OECD countries have zero or minimal Excise for small breweries, allowing their small brewing industries to flourish.

Finally, we will continue to lobby for reform and equity. We will be making pre-budget submissions and continuing to ensure that all Parliamentarians understand the economic contribution microbreweries can make, especially in regional and rural areas.

I would welcome the opportunity to update you on the WET equity proposal. If any further information is required please contact [ ] on [ ].

Yours sincerely,