Peak industry bodies Spirits & Cocktails Australia and the Australian Distillers Association have appeared before the House of Representatives Standing Committee on Industry, Science and Resources at Parliament House to make a case for reforms.
Australian Distillers Association chief executive, Paul McLeay, said the Australian distilling industry should be integral to the government’s Future Made in Australia policy.
“Just as previous governments recognised the potential of Australian wine, with the right policy settings and infrastructure, Australian spirits can realise a $1 billion export opportunity by 2035,” said McLeay.
“If we do not act now, Australian distillers will be outpaced by other emerging spirits markets in meeting growing consumer demand for premium products – and Australia will miss out on the economic windfall that could be ours.”
Spirits & Cocktails Australia director Nicole Lestal said the Government must release the handbrake that is the current excise regime.
“While Australian spirits account for 20 per cent of alcohol consumption, it accounts for 50 per cent of alcohol taxes,” said Lestal.
“This structural disadvantage impedes innovation and opportunities to re-invest in Australian spirits manufacturing.
“Our global spirits industry experience tells us that when governments act decisively and across multiple fronts to provide coordinated support, it incentivises investment to achieve scale and unlock further opportunities for economic value-add and innovation.”
The Spirits & Cocktails Australia and Australian Distillers Association submissions are available to download on the Inquiry website.