A TAX cut for boutique brewers could see a boost in jobs, but some say the federal government shout has fallen flat and should include non “fancy beer” too.
Ahead of the 2018 budget, the federal government announced it would douse a tax imposed on kegs smaller than 48 litres and increase rebates for craft brewers and distillers.
Daniel Emery, co-owner of The Welder’s Dog bars and brewery, said the tax cut was years in the making and followed plenty of lobbying from the industry.
Mr Emery said it would open up a new market for craft brewers and could spell more employment opportunities.
“This could open up new markets to sell to cafes and restaurants,” he said.
Previously kegs larger than 48 litres were taxed at a lower rate than smaller vats.
The change might allow venues to purchase smaller craft kegs at a cheaper rate.
The government also increased the amount beverage companies can claim back on their excise from $30,000 a year to $100,000, coming into effect July 1, 2019.
Mr Emery said the rebate increase could lead to more employment opportunities.
While the thought of cheaper craft beer had many charging their glasses, some said the measure didn’t go far enough.
Tamworth councillor Mark Rodda said it shouldn’t just cover “fancy beer” and should be implemented across the board.
“They should be cutting it on all beers,” he said.
“Alcohol can be a problem in communities, but it is a recreational thing for many.”
He said increasing food and beverage costs had added to cost of living pressures.
“It’s a commodity that increases in cost every six months,” he said.
“Nobody’s wages are keeping up with cost-of-living pressures.”
He said costs might have had an impact on the hotel industry in the region.
“From a local perspective, look at the Imperial and Good Companions hotel which are closed,” he said.
“Previously they were bustling, thriving businesses.
“Maybe that’s an indication of what’s happening in the industry.”