CANBERRA, July 4 (Xinhua) -- Australia's burgeoning craft beer industry is urging the government to give small-time craft brewers tax breaks similar to those given to boutique winemakers, after a report showed the industry is worth more than 740 million Australian dollars (568 million U.S. dollars) annually with huge scope for growth.
Currently in Australia, small breweries are being taxed at the same rate as giant, multi-national brewers, and the Craft Beer Industry Association's Chris McNamara has called on the government to give the little guys a "fair go."
He said the scope for growth in the craft beer industry was huge in Australia, but it wouldn't be realized if the current tax regime remained.
"Small wineries are getting up to 500,000 Australian dollars (384,000 U.S. dollars) per annum through rebates, while small brewers can only get 30,000 Australian dollars (23,000 U.S. dollars) in a tax break," McNamara told Macquarie Radio on Tuesday.
"So 25 percent of the cost of beer going out the door of breweries goes straight to the government, and that gets paid straight away. So as soon as the beer leaves the brewery, it gets paid to the government, but the brewers might not get paid by their clients for up to 90 days.
"In terms of cash-flow it can be crippling."
Peta Furling from Burleigh Brewing Company in Queensland told the Australian Financial Review that while the government has said it supports small business, even the successful craft brewers were finding growth to be a slog.
"Craft brewers pay approximately 25 percent of their total revenue as excise, a tax that is imposed as soon as the beer leaves the brewery whether the brewer has been paid for it at that point or not," she said.
Meanwhile, Dave Padden from Akasha Brewing Company in Sydney said that bigger tax breaks could mean lower prices, which means more exposure and growth for small brewers.
"The local community is incredibly supportive and people really like buying beers from a business that is in their own backyard," he said.
"We get families coming along on the weekend, and it's a good feeling. People say to us it's better than buying a non-descript mainstream beer from (large retailers)."