Popular regional craft breweries have been hit with up to a 10-fold hike in a State Government tax, threatening their viability and pushing up beer prices in a move described as “devastating and unAustralian”.
Shadow Minister for Small Business Fiona Simpson has called on the Palaszczuk Labor Government to dump the huge hike for craft breweries in their emergency services management levy, which came into effect from July 1.
Ms Simpson said the levy hike for small breweries was a cruel blow for the popular industry, causing operators unfair financial pressure with no justification or consultation beforehand from the State Government.
“The high-taxing Palaszczuk Labor Government can’t keep its hands out of people’s pockets and now they’re even going after their beer,” Ms Simpson said.
“They’ve got an unquenchable thirst for spending other people’s money and burdening small business.
“They’re trying to blame councils, but it is the State Government that sets the rate and it is the State Government that has gazetted a brand new regulation to change the group under which craft breweries are charged the levy
“They just didn’t bother to come clean and tell anyone before they slugged them and now they’re trying to blame shift instead of fix the problem.
“The regulation clearly shows micro-breweries have been shifted from Group 3 to Group 7, increasing their state levy charges up to 10 fold – but no one consulted with the craft brewing industry beforehand.”
Craft brewers in urban areas will see their State Government emergency management levy rise from $527.80 a year to $5224.20 this year.*
However brewers in all areas will see a massive increase in their previous emergency management levy.
Background explanation and references:
The emergency management levy is broken into different Groups A-E (classifying the type and size of business) and Classes (different geographical areas, determined by proximity to fire station and a services).
Click on link here to determine which geographic class businesses fall into, determined by proximity to fire stations and services:
The new regulation shifts microbreweries into a new Levy Group, thus the hike in charges.
Levy Group 3 – previous category for micro breweries
Levy Group 7 – new category for microbreweries from July 1
|Class A $527.80||$5,224.2|
|Class B $ 420.20||$4175.40|
|Class C $313.60||$3132.60|
|Class D $261.20||$2610|
|Class E $261.20||$1597.20|
Links to the new regulations:
* * 2019 – Fee change (annual update). Click link here.
* 2019 – Levy Group change from Category 3 to Category 7 for micro-breweries (NEW). Click link here.
* 2018 – previous regulation – which shows previous charges. Click link here.