E-Malt.com News article: New Zealand & Australia: New Zealand government asks for tax refunds for breweries exporting their production to Australia

New Zealand breweries exporting beer to Australia could get tens of thousands in tax refunds if the New Zealand Government has its way, stuff.co.nz reported on June 16.

The Government is calling on the Australian government to let New Zealand brewers who export across the Tasman in on a brewery refund scheme which gives Australian brewers up to A$30,000 (NZ$33,300) in tax refunds a year.

In response to an Australian tax discussion paper, the Government submitted a paper asking for an extension of the brewery refund scheme to New Zealand independent breweries in accordance with Closer Economic Relations (CER) obligations.

The extension would be similar to benefits New Zealand wine producers receive under the Wine Equalisation Tax (WET) rebate scheme.

Under the WET scheme more than 200 New Zealand wine companies have been claiming rebates of up to A$500,000 each a year.

WET was initially available to all Australian wineries but under the trans-Tasman CER the agreement was extended to New Zealand wineries.

The brewery refund scheme came into effect in Australia in July, 2012 replacing a microbrewery excise scheme.

To be eligible for the excise duty refund exporters must operate a brewery and both be legally and economically independent of any other entity that operates a brewery and sell beer that is manufactured at the brewery, directly from the brewery.

The Brewers Association of Australia and New Zealand chief executive Denita Wawn said the rebate scheme was designed for small breweries and did not apply to brewing giants DB Breweries and Lion.

Breweries which meet the criteria may be entitled to receive an annual refund of 60 per cent of the excise duty paid on beer, up to a maximum of NZ$30,000 year.

Kapiti Coast's Tuatara chief executive Richard Shirtcliffe said the craft brewer's exports to Australia increased 350 per cent in the 2015.

"It's a very important market to us and it's certainly a growth market," Shirtcliffe said.

Assuming all else remained equal a A$30,000 tax refund would go directly to the bottom line, he said.

"That makes the whole prospect of exporting to the Australian market that much more attractive and profitable."

New Zealand's craft beer industry had the potential to experience the same growth the wine industry experienced 20 years ago and become a $1 billion dollar plus industry, he said.

"That's only going to happen with all the obstacles to trade stripped away."

In a letter to the New Zealand Foreign Affairs and Trade Ministry the Brewers Guild of New Zealand said the brewery refund scheme would boost exports and growth for New Zealand brewers and provide a level playing field in the Australian market.


17 June, 2015