MEDIA RELEASE
19 May 2016
Excise amendments a big step forward for New Zealand brewers
The proposed update of the Customs and Excise Act 1996 to widen the scope for breweries requiring off-site storage is an
important step forward for the growing sector, says the Brewers Guild of New Zealand.
Current legislation means that, unlike wine producers, breweries incur excise as soon as inventory is moved into
off-site storage.
Brewers Guild president Emma McCashin said the proposed changes to the Act outlined by Minister of Customs Nicky Wagner
around off-site storage would help put brewing on a level footing and better reflected the needs of the modern sector.
“There have been huge developments in brewing that the Act couldn’t have anticipated 20 years ago, such as contract
brewing, the barrel ageing of beer and the need for increased stockholding capacity.
“This is something we’ve had really constructive discussions with government about, so it’s great to see proposed
changes that are a sensible and practical response.”
Mrs McCashin said greater clarity around the administration and collection of excise was a positive step for what had
grown into a sophisticated and valuable industry.
“As well as the impact on the ability of breweries to effectively manage inventory, excise can be a real challenge for
small and medium-sized breweries in particular, because of the impact on cashflow and the time involved in paperwork.
“Improving the way excise tax is applied means breweries will ultimately have more opportunity to grow.
“It’s great to see government agencies recognising the contribution the brewing industry makes to the New Zealand
economy. These changes will support even more innovation and growth in the sector.
“We’re looking forward to working closely with government to make sure this is done in the best way possible to benefit
the industry and consumers.”
ENDS