Australia’s independent beer brewers deliver $1.93 billion to the national economy
Australia’s independent beer brewers contribute a whopping $1.93 billion in economic output
to the Australian economy, according to new research.
An independent report commissioned by the Independent Brewers Association has found
Australia’s 600+ independent brewers are an economic powerhouse that is responsible for
supporting more than 33,000 Australian jobs.
IBA Chair and founder of Sydney-based Wayward Brewing Co. Peter Philip said Australian
independent brewers make a huge contribution to the economy by directly employing
approximately 7,000 people.
“This represents 51% of all employment in the brewing industry,” Mr Philip said.
“In addition, for every direct job in the brewing industry, a further 3.8 jobs are created in
associated industries such as agriculture, logistics, manufacturing, hospitality and services. The growth of independent beer in a relatively short period of time is testament to the tenacity
and innovation of these Australian-owned small businesses.
“Australia’s independent brewers grew by 15% in 2020. That’s despite the beer market
declining by 1.7% overall last year,” Mr Philip said.
“This demonstrates a consumer shift towards quality beer made by small, local producers who
are rebuilding an Australian-owned beer industry.”
As the nation recovers from the impacts of the pandemic, the independent brewing industry is
poised for growth with the IBA is forecasting investment of more than $500m in new
manufacturing capability, as well as the creation of an additional 6,300 direct and 23,000
supporting jobs over the next five years.
The IBA took the new data to Parliament House in Canberra last week and sought assistance
to accelerate job creation and investment in the sector.
“We are asking the Government to work with us to pave the way for accelerated growth,” Mr
“We need the Morrison Government’s help to develop a national strategy and make small
changes to the tax regime, which is currently stifling opportunity.”
IBA General Manager Kylie Lethbridge said currently about $0.42 in every dollar of
independent brewer revenue is remitted in some form of federal tax, which is one of the highest
in the world.
“What we are asking is for the Morrison Government to reinvest a small portion of the $220
million in independent beer excise tax forecast to be collected in 2021/22 to create more new
jobs and to leverage more than $500 million in capital investment,” Ms Lethbridge said.
“A small contribution today would have a strong multiplier effect on growth and jobs, including
in rural and regional Australia, and would ultimately increase the amount of excise collected.
“This is low hanging fruit – it’s an immediate and inexpensive way the Government can achieve
its growth objectives and support small businesses through a rough economic period.”
DETAILS OF IBA PROPOSAL:
To realise the opportunities for growth as outlined above, the IBA proposes a number of solutions
that can be delivered in partnership with the Federal Government, requiring a small contribution from
the 2021/22 budget.
- 1. Provision of $300,000 in one-off funding to the IBA to support the development of a national
industry strategy. This would provide a 10-year roadmap for sustainable industry growth in
areas including domestic manufacturing, employment, regional development and export
- 2. Increase the Small Brewers Rebate Scheme from the current cap of $100,000 to $350,000
per year, which would accelerate the competitiveness of small brewers.