Australia’s liquor industry voices disappointment with the recently unveiled Federal Budget, labeling Treasurer Jim Chalmers’ economic strategies as misguided and a missed opportunity. While reactions from the hospitality and retail sectors are anticipated later this week, focus remains on the liquor production side.
In his address to Parliament, Treasurer Chalmers outlined the Albanese Labor Government’s commitment to fostering a “Future Made in Australia” plan, aiming to bolster job creation and economic growth across the nation. Emphasizing investment in innovation, technology, and regional prosperity, Chalmers presented a vision for a resilient economy powered by clean energy.
However, spirits and cocktails associations, notably Spirits and Cocktails Australia (SC&A) CEO Greg Holland, expressed skepticism regarding the forward estimates presented in the Budget. Despite projections of significant growth in the industry, concerns arise over the substantial spirits excise and the lack of alleviative measures. Holland highlighted the disparity between growth forecasts and the existing regulatory hurdles, particularly the spiraling spirits tax, which impedes industry expansion.
Echoing this sentiment, Paul McLeay, CEO of the Australian Distillers Association, emphasized the need for policy adjustments to catalyze growth in the spirits sector. While endorsing the government’s focus on domestic manufacturing, McLeay stressed the unique value proposition of Australian distilleries and urged for tax relief to spur industry advancement.
In parallel, Australia’s wine industry voiced disappointment with the Budget’s oversight of their sector’s challenges. Australian Grape & Wine CEO Lee McLean criticized the absence of support for growers and winemakers grappling with market disruptions, urging for urgent government intervention. Despite the industry’s significant economic contribution, McLean lamented the government’s disregard for pre-Budget submission requests and the introduction of the Biosecurity Protection Levy.
Furthermore, CPA Australia highlighted the Budget’s limited support for small businesses, noting the pressing need for measures to alleviate cost pressures. While acknowledging certain positive initiatives, such as the extension of instant asset write-offs, CPA Australia CEO Chris Freeland emphasized the importance of fostering business innovation and competitiveness. Calling for a more comprehensive small business strategy, Freeland underscored the pivotal role of small enterprises in driving economic growth and productivity.
In conclusion, the liquor industry’s discontent with the Federal Budget reflects broader concerns over regulatory barriers and insufficient support for key economic sectors. As stakeholders continue to advocate for policy reforms, the government faces mounting pressure to address industry grievances and chart a path towards sustainable economic recovery.
