The Victorian Distillery Door Grant Program has a $10 million total funding to support and enhance Victoria’s distillery industry. Under this, the Infrastructure and Boosting Visitor Economy grants will provide direct funding to eligible businesses.

Deadlines and Timings

Applications are open and will close on 07 April 2023. Application outcomes will be advised in writing via email within 4 to 6 weeks from date of lodgement but may take longer depending on application volume.

Overview and Grant Amount

Two Streams of funding for projects are available under the Program:

Stream 1: up to $20,000 (GST exclusive) are available to increase business capability and efficiency through investment and improvements in on-site infrastructure.

Stream 2: up to $70,000 (GST exclusive) are available to establish, enhance, or promote a distillery door, increasing visitation.

Grant recipients will be required to make a cash co-contribution of a minimum of 30% or 50% of the total eligible expenditure on the project.

Co-contribution will be:

• 30% cash co-contribution if no more than 10,000 litres of alcohol produced in the 2021/22 financial year
• 50% cash co-contribution if greater than 10,000 litres of alcohol produced in the 2021/22 financial year

Co-contributions must be cash. In-kind contributions such as labour are not included. Any additional or ineligible costs associated with the overall project must be met by the grant recipient.

Applicants can apply for a grant for a maximum of two different projects, up to the total eligible stream value. For example, an applicant can apply twice for $10,000 under Stream One for two different projects.

Eligibility and Criteria

To be eligible to apply for a grant, applicants must:

• have a current Australian Business Number (ABN)
• be registered as a business in Victoria
• be a legal entity
• Own at least one still with a capacity of fifty (50) litres or more
• hold a valid ATO manufacturer licence to produce distilled alcoholic beverages
• hold a current general or producer’s liquor licence issued by Liquor Control Victoria
• agree to participate in future Program evaluation activities
• meet all workplace and employment obligations as an employer in accordance with the National Employment Standards and the rights and obligations under applicable industrial awards
• be able to meet the agreed (minimum 30-50%) cash co-contribution requirement

Applicants will need to:

• provide details of all ATO Manufacturer Licences held by any directors/owners or the business/company applying
• provide details of general or producer’s liquor licence issued by Liquor Control Victoria
• attest to litres of distilled alcohol produced in the 2021/22 financial year
• attest they operate as a distillery and sell (intend to sell) their distilled alcoholic beverages through at least of one of the following: distributor, distillery, online OR are currently ageing spirits produced in their own still in barrels for the production of spirits (Stream One)
• attest they operate as a distillery, have (will have) a distillery door linked to the distillery and sell (intent to sell) their distilled alcoholic beverages (Stream Two)
• provide relevant information on the project, including quotes, project budget and timeline

Ineligible applicants:

• Producers of spirits that do not distil their own alcoholic beverages
• Government departments or agencies and local councils
• Unincorporated associations and franchisees
• Applicants that have applied for another state government grant for the same project
• Applicants not based in Victoria Unincorporated organisations and organisations with an ABN registered after 30 June 2021 will be required to have a local council enter into the grant agreement on their behalf

Eligible Activities

Grant funds must be used by business chambers and trader groups to support their members by undertaking activities that support the program objectives such as:

• supporting and encouraging local business collaboration activities
• business skill development, networking and resource sharing
• upgrading digital channels to better support members
• helping members adapt to a COVID operating environment
• support or advancement of the community

The program of activities may be virtual or face-to-face and take any format, including:

• success story networking
• workshops and short courses
• online training and webinars
• employee skill and capability development
• in language business events
• app licensing or website development
• cyber security scenarios exercise
• digital business expo

Eligible Expenditure

Grant funding may be used for the following types of projects:

Stream One

Projects that support distillery infrastructure development that will increase business efficiency or capacity, the adoption of new technology, improves safety or sustainability. These projects will allow distillers to enhance or expand their offerings as a premium Victorian producer.

• new equipment or small-scale infrastructure for the distillery (including signage)
• technology adoption (excluding training and on-going maintenance and service support costs)
• product diversification
• items that support business efficiency and/or safety

Stream Two

Projects that support distillery door establishment or enhancement to increase physical visitation to the distillery door. These projects will directly support Victoria’s tourism offerings and reputation as a premium producer of spirits.

• establishment of a distillery door through a new build or building enhancements
• new equipment or large-scale infrastructure for the distillery (including signage) that will increase visitation
• marketing costs – initial establishment costs for digital marketing, advertising, promotional collateral that will increase visitor flow (capped at $20,000 GST exclusive)

Other eligible expenditure may be accepted on a per case basis. Stream One projects must be completed and fully acquitted within 5 months of the execution of the Grant Agreement. Stream Two projects must be completed and fully acquitted by  31 March 2024.

Ineligible Expenses

• grants will not be provided for retrospective activities or purchases (i.e., activities that have occurred or purchases made prior to execution of the Grant Agreement or the commencement date for the project as set out  in the Grant Agreement)
• ongoing operating expenses or other ‘business as usual’ expenses (including but not limited to utility and product costs; maintenance and service support costs; advertising and social media; operational wage-related costs; online costs – such as internet connectivity, website domain names and hosting; e-commerce platforms)
• single use items (e.g., bottles, labels, produce etc)
• fees associated with permits for planning or annual certification
• training costs associated with technology adoption
• costs associated with applying for government grants and funding programs
• the purchase, lease or acquisition of land and any travel, flight and accommodation costs
• any vehicles (including tractors, forklifts, mortised bikes etc) or vehicle associated costs

For more information, interested parties are encouraged to read the program guidelines set by the funding grant. Submissions of applications may be lodged through their online portal.

Expert Assistance

We have 14 years of experience preparing EMDG claims and can assist in making sure you receive your maximum rebate.

Working with us means you get the maximum grant with minimum risk and effort. Our expertise includes R&D Tax Incentive registration and tax schedules, Export Grants, Capital Expenditure and Infrastructure Grants.

Get in touch with us and let’s discuss this more in detail.

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