EXPLANATORY STATEMENT
Issued by authority of the Assistant Treasurer and Minister for Financial Services
Excise Act 1901
Excise Amendment (Remission Increase for Distillers and Brewers) Regulations 2025
Section 164 of the Excise Act 1901 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.‑
Section 78 of the Act provides that regulations may prescribe circumstances in which remissions of excise duty in respect of a class of excisable goods may be allowed, and the amount of remission that may be allowed in those circumstances.
The Excise Regulation 2015 prescribes circumstances in which an alcohol manufacturer is eligible for a remission of excise duty payable on certain alcoholic beverages. Broadly, this excise remission scheme allows distillers and brewers to receive automatic remissions of duty payable on certain beer and spirits which are entered for home consumption. However, the remission is capped at a certain amount per financial year.
The purpose of the Excise Amendment (Remission Increase for Distillers and Brewers) Regulations 2025 (the Regulations) is to amend the Excise Regulation 2015 to increase the maximum amount of remission an eligible alcohol manufacturer may be entitled to per financial year. Specifically, this remission cap is increased from $350,000 to $400,000 in relation to certain alcoholic beverages entered for home consumption on or after 1 July 2026.
The amendments implement the Government’s commitment in the 2025-26 Budget to support Australian brewing and distillery businesses by providing increased tax relief through the excise remission scheme. This aligns with reforms to increase the maximum amount of producer rebates available per financial year under the A New Tax System (Wine Equalisation Tax) Act 1999, to ensure consistency of treatment between wine producers and other alcohol manufacturers.
The Treasury undertook two weeks of public consultation on an exposure draft of the Regulations. Feedback received during consultation generally supported the amendments, with varying views on how the remission cap level could be designed. Although all eligible alcohol manufacturers are entitled to the remission, the amendments are intended to particularly assist craft brewers and distillers, for whom this remission amount represents a larger proportion of their overall excise duty liabilities. Further, it is intended to ensure tax relief available to brewers and distillers is aligned with that available to wine producers. Other feedback related to the broader scope of the excise remission scheme, which was not the subject of these amendments.
The Act does not specify any conditions that need to be satisfied before the power to make the Regulations may be exercised.
The Regulations are a legislative instrument for the purposes of the Legislation Act 2003 and are subject to the sunsetting and disallowance regimes set out in that Act. However, if the Regulations are not disallowed, it will automatically repeal when the disallowance period ends in accordance with section 48A of the Legislation Act 2003 and the sunsetting regime in that Act will no longer be relevant.
The Regulations commenced on the day after registration on the Federal Register of Legislation.
Details of the Regulations are set out in Attachment A.
A statement of Compatibility with Human Rights is at Attachment B.
ATTACHMENT A
Details of the Excise Amendment (Remission Increase for Distillers and Brewers) Regulations 2025
Section 1 – Name
This section provides that the name of the Regulations is the Excise Amendment (Remission Increase for Distillers and Brewers) Regulations 2025 (the Regulations).
Section 2 – Commencement
The Regulations commence on the day after the instrument is registered on the Federal Register of Legislation.
Section 3 – Authority
The Regulations are made under the Excise Act 1901 (the Act).
Section 4 – Schedule
This section provides that each instrument that is specified in a Schedule to the Regulations is amended or repealed as set out in the applicable items in the Schedule, and any other item in the Schedule has effect according to its terms.
Schedule 1 – Amendments
This Schedule amends the Excise Regulation 2015 (the Excise Regulation) to increase the maximum amount of remission of excise duty an eligible alcohol manufacturer is entitled to per financial year for excise duty payable on certain alcoholic beverages.
New remission cap
Items 2 and 3 of Schedule 1 to the Regulations amend subclauses 2(1) and (3) of Schedule 1 to the Excise Regulation.
Subclause 2(1) prescribes circumstances in which a full remission of excise duty may be made without an application, in accordance with paragraph 78(1)(b) of the Act.
Table item 10 of subclause 2(1) sets out when an alcohol manufacturer is eligible for such a remission in respect of an alcoholic beverage (within the meaning of the Act) that is manufactured by the alcohol manufacturer and entered for home consumption during the financial year. In this context, alcoholic beverages broadly encompass beer and certain spirits subject to excise duty under the Excise Tariff Act 1921.
Paragraph (c) in table item 10 of subclause 2(1) provides that the maximum amount of remission cannot exceed the remission cap for the financial year, or a proportionate amount if the alcohol manufacturer becomes an alcohol manufacturer after the start of the financial year. The proportionate amount is calculated using the formula in subclause 2(3).
Item 2 of Schedule 1 to the Regulations amends subparagraph (c)(i) in table item 10 of subclause 2(1) to increase the remission cap from $350,000 to $400,000.
Item 3 of Schedule 1 to the Regulations accordingly updates the formula in subclause 2(3) to replace the reference to $350,000 with $400,000.
Items 2 and 3 of Schedule 1 to the Regulations have the effect of entitling eligible alcohol manufacturers to a higher amount of remission of excise duty for eligible alcoholic beverages per financial year.
Application of new remission cap
Item 1 of Schedule 1 to the Regulations inserts section 64 into Part 8 of the Excise Regulation, which deals with application and transitional matters. Section 64 is an application provision which provides that the new remission cap of $400,000 applies in relation to alcoholic beverages entered for home consumption on or after 1 July 2026.
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Excise Amendment (Remission Increase for Distillers and Brewers) Regulations 2025
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Excise Amendment (Remission Increase for Distillers and Brewers) Regulations 2025 (the Regulations) amends the Excise Regulation 2015 to increase the maximum amount of remission of excise duty an eligible alcohol manufacturer is entitled to per financial year.
Specifically, the remission cap is increased from $350,000 to $400,000 for excise duty payable on certain alcoholic beverages (broadly beer and some spirits) entered for home consumption on or after 1 July 2026.
The Regulations implement the Government’s commitment to support Australian brewing and distillery businesses by providing increased tax relief in relation to their excise duty liabilities.
Human rights implications
The Regulations engage the right to health in Article 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).
Article 12 of the ICESCR protects a person’s right to the highest standards of physical and mental health. Under Article 12(2)(c), the right to health includes an obligation on the State to take steps to prevent, treat and control diseases.
Any retrogressive step in relation to the right to health must effectively and proportionally achieve a legitimate objective. The Regulations meet these criteria.
The objective of the Regulations is to support local businesses, regional tourism and employment through providing increased tax relief to Australian brewing and distillery businesses. The amendments are rationally connected to and proportionate to this objective, as they provide direct support to local businesses, without imposing direct restrictions on the ability to prevent or control diseases. To the extent that this support is passed on to the consumer, increasing the remission cap is also not anticipated to result in any attributable increase in alcohol consumption.
Conclusion
This Regulations are compatible with human rights as it is not expected to impact the right to health. The objective of the Regulations also satisfies the criteria that any step away from the right to health be rationally objective and proportionate.