Parliamentary Friends of Australian Spirits

The Parliamentary Friends of Australian Spirits convened to hear about the uniqueness of Queensland Rum and it’s special place in the world. ADA Members. Bundaberg Rum and Reef Tip, Capricorn Distilling and CAVU gave a comprehensive update. If you would like a copy of the presentation, let me know. We plan on having the next PFAS event when Parliament resumes next year and the focus of the next event will be to showcase Tasmanian Whisky and later in the calendar we will have an event with Australian Women Distillers.

Distilleries in the Media

If you missed it, click here for a great story that talks about something we all are too well aware of: Lockdown cocktails have taken off but regional distilleries can't wait to welcome patrons back

Australia – India Free Trade Agreement

Dan Tehan MP, Minister for Trade, Tourism and Investment formally launched the resumption of negotiations on the India-Australia Comprehensive Economic Cooperation Agreement (CECA).
 
Both India and Australia reaffirmed their commitment to conclude a CECA, including to reach an interim agreement by December 2021 to liberalise and deepen bilateral trade in goods and services, and to conclude the negotiations on a full CECA by the end of 2022.
 
India has a tariff of 150% on all imported alcohol. ADA would like the Australian Government to sign a preferential agreement with India to reduce the tariff for Australian spirits. We support the reduction of the tariff on all Australian alcohol.
 
ADA is being represented by the President, Stu Gregor and Geoff Bainbridge, MD of Lark Distilling Co in negotiations with the Department of Foreign Affairs and Trade and a formal submission will be made.

Australian Government Deregulation Taskforce

The ADA continues negotiations with the Deregulation Taskforce to cut red tape for the spirits sector and a submission was made during their recent public consultation period. Ministers Sukkar, Morton and Wood have led the drive to streamline excise administration for fuel, beer and spirits.

Summary of ADA recommendations:

• Producers who remain under the $350,000.00 annual threshold should not be required to register for excise and be required to submit returns.
• Align and incorporate the reporting and payment of excise with Business Activity Statements.
• That indexation of excise in line with CPI is abolished, or at least, paused for three years in order to recover the impacts of Covid-related impacts to the economy.
• If indexation of excise is not frozen or removed, we recommend that it be affected only once per year, and reasonable notice be given before it is passed on.
• The Australian Distillers Association and Australian Tax Office produce a joint education campaign that included a user-friendly guide and video library to assist producers in their obligations and requirements.
• The Deregulation Taskforce should be aware of the Blockchain pilot being conducted by
• Samples, for both testing and consumer samples, should not be required to pay excise, and permission should not be required.
• The manufacturers licence register is available to industry associations in order to work cooperatively to ensure a compliant industry.

Briefing with Treasurer, Josh Frydenberg and Leader of the Opposition, Anthony Albanese and others

Through our membership of Spirits & Cocktails Australia, the ADA participated in briefing sessions with the Federal Treasurer on 29 September 2021 and the Leader of the Opposition on 6 October 2021. We have also presented to the Shadow Health Minister and have extensive briefing sessions and presentations with key stakeholders in the lead up to the Federal election and the Budget next year. The presentations shared recent analysis from Deloitte Access Economics on the economic contribution and potential of the Australian spirits industry, and addressed barriers to investment and the industry’s need for further reform to deliver a fair and sustainable spirits tax regime. President Stu Gregor represented the ADA and was assisted by ADA Secretary, Stephen Parry in preparing the strategic approach to the meetings. We will continue to prosecute our campaign for a fair and sustainable economic environment that allows the Australian Spirits Industry to thrive. If you would like a revised copy of any of the presentations, you can let me know and I will send it to you. The ADA has already begun our work on preparations for the pre-budget submission for the next budget.

Blockchain Pilot

ADA is participating in a Blockchain Pilot being conducted by Convergence.Tech (CT) that will identify benefits blockchain technology can provide our members in the potential for automating excise payments and processes.  
   
ADA members who have participated in the discovery process for the pilot are: Archie Rose Bundaberg Rum Four Pillars Lark, Manly Spirits  
  
The pilot is also being supported by some of our Associate members and supply chain partners. The pilot project is a result of the recently announced funding from the Department of Industry, Science, Energy and Resources (DISER). A key objective is to help companies in the Spirits sector reduce compliance costs associated with the creation, storage and transportation of their products. Further details on the public announcement of the funding can be found here. 
 
CT is a Melbourne based technology company, and the KPMG alcohol excise team will be collaborating with the industry to identify the most significant benefits blockchain technology can provide for our members. The focus of the discovery phase is on the highest priority irritants for industry that could be reduced or removed through a blockchain solution. Potential benefits may include ability to prove provenance, smart contracts to align ATO payments with payment terms, and removal of administration and processing.

ADA Website and Association Management System

ADA is in the process of building a new Association Management System (AMS) that will include a CRM, members only knowledge bank, events management system, and customer facing website. It is progressing well and expected launch at end of November 2021.

Food Standards Australia and New Zealand (FSANZ) Energy Labelling Review

The ADA continues to be an active participant in FSANZ’s stakeholder and industry consultation on energy labelling requirements. The first stage of this review has now been completed, with an evidence assessment report and supporting literature review now published on the FSANZ website.
 
The ADA position can be summarised as follows:

• we prefer energy labelling to be voluntary,
• producers should be able to determine the way the information is presented,
• the comparative measurements should be via a standard drink and not 100ml,
• if the voluntary scheme does, at some stage, become mandatory there should be a long lead time to allow producers to minimise the financial impact of adopting the change .

Queensland Liquor licensing laws

ADA wrote to every Member in QLD asking them to write to their local MP to comment on the Justice Legislation (COVID-19 Emergency Response – Permanency) Amendment Bill 2021, which amends the Liquor Act to provide a permanent ability for licensees holding a subsidiary on-premises licence (meals) – principally restaurant licensees – to be authorised to sell a limited amount of wine for takeaway or delivery with a takeaway meal.
 
The reforms differ from the current COVID-19 temporary takeaway liquor authorities, removing the ability of licensees to sell takeaway pre-mixed spirit based drinks and cocktails.  We asked members to urge the Government to keep the temporary measures intact as it moves to make them permanent to allow licensees to continue to sell pre-mixed spirits with takeaway meals.
 
We welcome the decision by the Queensland Government to make permanent some of the temporary measures introduced as a result of the COVID-19 pandemic in an effort to stimulate growth for Queensland’s hospitality sector, and in particular its licensed restaurants.  However, there is no policy justification for restricting the sale of alcohol beverages to the wine category, from either a harm minimisation perspective, or an industry and economic perspective.  In fact, the Bill’s proposed focus on wine exclusively not only hurts Queensland distillers but allows for higher amounts of alcohol to be sold (via two bottles of wine) than is contained in a six-pack of pre-mixed spirits.  Therefore, we recommended that licensees continue to be allowed to sell pre-mixed spirits with the sale of takeaway meals, up to a maximum of a six-pack, thus meeting the twin aims of promoting economic recovery while ensuring minimisation of harmful consumption of alcohol. 
 
We are very pleased to announce the Committee reviewing the legislation has reported: “Having considered the various economic, health and licensing implications associated with this reform, it was the view of the committee that there is opportunity to find a middle ground that meets the needs of all parties and supports small businesses as well as harm minimisation strategies. The committee recommends that the Minister consider amending the Bill, to provide the option of allowing 1.5 litres of either wine, beer, cider or pre-mixed drinks, to be sold with a takeaway meal.” This is a sensible and constructive solution that we are very pleased with.

Well done to the QDA for a sustained campaign!

South Australia Container Deposit Proposal

The ADA is very concerned that the South Australian Government is proposing to amend the Container Deposit Scheme (CDS) to include full bottled wine and spirits.
 
Originally, the CDS was created to reduce public litter from single serve containers.  In recent years, it has transformed into an initiative to promote recycling.  The big difference is that in between South Australia introducing CDS and today, we now have roadside collection of recycling.  Wine and spirits bottles are consumed in the home or in licensed premises, which already have recycling collection.  There is negligible public litter of larger wine and spirits bottles, so it has to be presented as a recycling initiative.  In the proposal, wine and spirits bottles would be removed from roadside recycling.
 
The reason why there is a push to include wine and spirits is that the scheme is industry-managed by those already included – i.e. beer and soft drink.  They charge industry fees within the remit of the scheme, and that want to expand this to wine and spirits for revenue purposes, not environmental purposes.  So, they have put pressure on officials to expand the scheme under the guise of recycling. 
 
There will be increased costs to wine and spirits, and it will probably hit wine a lot harder than spirits because of their tighter margins, and the extra price is usually absorbed by the producer, not passed on through the retailer.  It will be about 15c per container.

Project Groups

ADA has recently established a series of Project Groups. Thank you to the members who volunteer their time and experience for these groups. The Project Groups have already started meeting and will become a reference and guidance point for the broader industry. They will be advisory only. Any conclusions made by the Project Groups will be required to form recommendations that will go to the Committee for endorsement or approval.
  
Government, Advocacy and Regulatory Chaired by David Ridden

• Tax/Excise
• Licensing
• State based policy initiatives that may have an impact in other jurisdictions

• Maturation
• Food standards
• Definitions of Spirits
• Label integrity

• Distillery and visitor centre safety standards
• WHS
• Food safety
• Development of fact sheets and videos that support the BECA modules

• Energy usage and management
• Waste and water management
• Best practice guides and advice
• Container deposit schemes

We sought expressions of interest from any Member of the ADA who is interested in joining any of the Project Groups. The Project groups will be providing an update at the AGM. To register to attend the AGM to be held next week, click here.