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The Australian spirits industry welcomes the Morrison Government鈥檚 announcement overnight of a $2.6 million grant to explore the potential of Blockchain technology to enhance the productivity and competitiveness of the food and beverage sector.

The grant is funded under the Australian Government鈥檚 Digital Business package, which was announced in the Federal Budget 2020-21, and aligns with the Government鈥檚 National Blockchain Roadmap, which was released in February 2020.

The Minister for Industry, Science and Technology Christian Porter MP confirmed the 鈥楥onvergence鈥� consortium would receive $2.6 million to pilot a program to leverage blockchain technology to automate key reporting processes under the excise system to reduce compliance costs associated with the creation, storage and transportation of Australian spirits. The Convergence consortium comprises leading tax specialists from KPMG Australia, and digital transformation and blockchain experts Converge.tech.

Spirits and Cocktails Australia Chief Executive Greg Holland said:

鈥淭his grant provides a great opportunity for the spirits industry to be at the forefront of testing the viability of Blockchain to solve the challenges associated with excise payment processes and compliance. The project offers the potential form the foundations of new regulations and policies which can transform the food and beverage industry.鈥�

Australian Distillers Association Industry & Government Engagement lead Paul McLeay said:

鈥淭he 免费黑料网 looks forward to collaborating with Convergence to contribute subject matter expertise to the project and support the research and adoption of the product through our members. We are proud to partner with Convergence.Tech and KPMG who have the technical blockchain skills and excise taxation expertise to successfully deliver this pilot.鈥�

Alcohol Beverages Australia Chief Executive Andrew Wilsmore also welcomed the announcement:

鈥淭his project offers a unique opportunity to deliver on the goals outlined in Alcohol Beverage Australia鈥檚 Vision for Industry 2030 to gauge the effectiveness of Blockchain technology to meet the demands of modern manufacturing in the digital age. We look forward to seeing the results of the pilot to understand the potential benefits for the broader alcohol industry.鈥�

The Australian Distillers Association and Spirits and Cocktails Australia applaud the Morrison Government鈥檚 decision to increase the excise refund cap for small distillers and brewers from $100,000 to $350,000 per year as part of the 2021-22 Federal Budget.

This initiative will deliver much needed assistance to more than 300 craft distillers, most of whom are based in rural and regional areas, and also represents a promising first step towards unleashing the potential of the Australian spirits industry.

Australian Distillers Association president Stu Gregor said: 

鈥淭his decision provides much needed relief for hundreds of craft distillers around the country that were severely impacted by COVID-19. It means craft distillers will have more capital available to help their businesses grow and to employ more locals 鈥� bringing important economic benefits through job creation, expanding farm production, regional tourism and hospitality for our communities.

鈥淲e have great ambitions to grow Australia鈥檚 world-class distilling industry and this is a great first step that will help the industry to grow.鈥�

Spirits and Cocktails Australia chief executive Greg Holland said:

鈥淭he best alcohol tax system is a fair one, so we thank the Government for bringing the tax incentives offered to small distillers and brewers into line with those offered to small wine makers.

鈥淗owever, we note that Australia鈥檚 alcohol tax regime remains fundamentally flawed and unfair, imposing a spirits tax that is already ten times higher than the US rate, and 68% higher than New Zealand鈥檚, with further increases every six months.

鈥淲e look forward to continuing to work with the Government toward a fairer and more sustainable spirits tax regime 鈥� one that aligns spirits tax rates with brandy, and freezes CPI increases 鈥� to create jobs, investment and export opportunities in a burgeoning Australian industry.鈥�

Australia鈥檚 distillers have welcomed cross-party support in federal parliament for urgent action on this country鈥檚 spirits tax regime, now the third highest in the world.

A motion calling for spirits tax reform was moved in the House of Representatives on Monday night by Tasmanian Independent Andrew Wilkie (the member for Clark), and seconded by South Australian Independent Rebekha Sharkie (Mayo).

Coalition MPs Bridget Archer (Bass) and Tim Wilson (Goldstein) and Labor MPs Brian Mitchell (Lyons) and Patrick Gorman (Perth) also spoke passionately in support of the motion.

The Australian Distillers Association and Spirits and Cocktails Australia applauded the members for their support of their industry, which now employs more than 5,000 Australians and supports another 15,000 jobs indirectly.

The organisations welcomed the growing recognition among federal MPs of how the unfair spirits tax is holding back a promising Australian industry, as captured in the members鈥� speeches on Monday night:

鈥淭asmania's boutique distillers in particular desperately need this tax reform and some may sink without it鈥� It is clear that current spirit taxation is a huge barrier to locally-made craft spirits, achieving success nationally and in overseas markets.鈥� 鈥� Andrew Wilkie, Member for Clark 鈥淲e are taxing the lifeblood out of this industry, and this industry will not flourish. The government says it's a government for low taxes and believes that, by lowering taxes, we stimulate the economy.

Well, this is a prime example.鈥� 鈥� Rebekha Sharkie, Member for Mayo

鈥淚 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.鈥� 鈥� Bridget Archer, Member for Bass

鈥淚t's a space where we as a country do it so differently to everybody else, which gives us an incredible product position. But there's one thing that's holding us, like the entire country, back: we desperately need tax reform, tax reform, tax reform.鈥� 鈥� Tim Wilson, Member for Goldstein

鈥淲hen wine taxation was reformed, it led to an explosion in the industry. It just blossomed. That's what we want to see happen with spirits.鈥� 鈥� Brian Mitchell, Member for Lyons

鈥淲e talk about bringing back manufacturing to Australia. The distilling industry is manufacturing, and we should do what we can to support it. It's exactly what Australians want: quality jobs, value added, export-ready.鈥� 鈥� Patrick Gorman, Member for Perth

The Australian Distillers Association welcomes the Andrews Government鈥檚 announcement yesterday to invest $10 million in distillery door grants over the next two years.

This investment will directly benefit the 104 distilleries located throughout Victoria, who buy produce from local farmers, attract tourists to the regions, and create jobs, both within their own operations and in the services and supply chains.

Chris Pratt, Australian Distillers Association Victorian spokesperson and owner of Kilderkin Distillery in Ballarat, said:

鈥淭his is wonderful news for Victorian craft distillers. We will be able to invest more in our distillery doors to encourage more people to sample Victorian spirits and enjoy a unique and innovative distillery experience leading to further employment opportunities in Victoria.

鈥淲e are very pleased the government has recognised the contribution of the craft spirits industry to the Victorian economy, especially in regional areas where many distilleries are based. We thank the Andrews Government for their ongoing support.鈥�

Dave Irwin, President of Spirits Victoria Association and owner of Patient Wolf in Southbank Melbourne, said:

鈥淭his is a great result for Victorian producers and consumers. This significant grant program will help to grow a burgeoning spirits industry. Spirit producers will be able to employ more people and positively impact the farmers and businesses that support them. More distillery doors will mean more consumers get to experience innovative products created by passionate people, and will enrich local tourism offerings.鈥�

Holly Klintworth from Bass & Flinders in Dromana, who has been operating a cellar door since 2014, said:

鈥淲e get 20,000 visitors to our distillery door every year and with this grant we hope to use the funds to reinvest into additional resources to improve our visitor experience. This announcement will drive more people to the Mornington Peninsula.鈥�

Russ Watson, founder of Bellarine Distillery on the Bellarine Peninsula said:

鈥淲e have a vibrant cellar door. Everything is made on the premises. This is going to help us develop what we have on our property. We have plans to build a new distillery and this will go a long way to making this happen sooner. This announcement will create jobs.鈥�

Stu Gregor, President of Australian Distillers Association and co-founder of Four Pillars in Healesville, said:

鈥淭he announcement from the Andrews Government will mean more jobs for Victorians 鈥� especially in the regions and importantly, jobs that people will love. Craft distillers are passionate about the innovative and world class products they make.

鈥淭he 免费黑料网 looks forward to working with the Andrews Government to ensure the program meets its stated objectives of supporting local jobs and investment in a financially responsible and sustainable way.鈥�