Black Brewing collapse: How the ATO pulled the plug on a craft beer dream

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Black Brewing collapse: How the ATO pulled the plug on a craft beer dream
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Black Brewing Co stopped paying the tax office for almost a year and ultimately joined the dozens of craft brewers who have gone bust. The ATO will not budge.

Already a subscriber?The Australian Taxation Office has vowed to keep up its hard line approach in recovering overdue debts even if it spells the end for companies facingA demand from the ATO for payment of $1.2 million owed by craft beer group Black Brewing Co was discovered to be a catalyst for its appointment of administrators last month.

Black Brewing’s assets are now being liquidated by Avior Consulting after creditors voted last week to dismantle the beer group, established in West Australia’s Margaret River region in 2015.which have collapsed this year as demand from consumers slows amid a cost-of-living crisis, at the same time as costs increase sharply. Brewers are battling raw material price rises, higher energy and wages bills and an increase in excise payments to the federal government linked to inflation.

Black Brewing, whose directors were Kristin Kestell and Robert Johnston via the corporate entity Very Luxury, Very Famous Co, had agreed payment plans with the ATO but the tax office lost patience in May 2024, after it issued director penalty notices and a statutory demand.

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