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Opening a brewery in Australia is an exciting way to turn your passion for craft beer into a thriving business. With the craft beer industry booming and Australians embracing unique, locally brewed flavours, many entrepreneurs are thinking about starting a brewery. However, launching a successful brewery takes more than just brewing great beer – you’ll need to carefully navigate business registration, licensing, legal compliance, and protect your brand from day one.
If you’re wondering how to start a brewery, what steps to take, and how to steer clear of costly mistakes, this guide is for you. We’ll break down the process of starting a brewery in Australia, highlighting key legal requirements and providing practical steps to get you on the right track. Whether you dream of running a boutique microbrewery, or envision your beer served nationwide, let’s look at what you’ll need to open legally and set up for success.
What Is a Brewery Business in Australia?
Before diving into the legalities, it’s worth clarifying exactly what a brewery business involves. In Australia, a brewery typically refers to a commercial operation that produces and sells beer (and in some cases, other alcoholic beverages like cider) via wholesale, retail, or direct to consumers. Breweries can range from large regional players to small-scale nano or microbreweries that brew on-site.
Brewery businesses often operate out of a physical location that may include a production facility, taproom, bar, restaurant, or a combination of these. The brewery sector is tightly regulated due to the potential risks and responsibilities that come with producing and serving alcohol. This means there are specific Australian laws, permits, and compliance obligations that set brewery startups apart from other hospitality or retail businesses.
Is Starting a Brewery in Australia Feasible?
Australia’s love for craft beer offers business owners significant opportunity – but competition is strong and margins can be tight. Before jumping in, ask yourself:
- Have you researched your target market? What beer styles are in demand? Is there a niche you can fill in your location?
- Do you understand your local competition? Visit other breweries – what are they doing well? Where is the gap?
- Have you drafted a business plan? Map out your business structure, financial forecasts, funding plan, marketing and distribution model. Documenting this in detail will guide your legal and operational decisions going forward. For guidance, see our business startup checklist.
- Do you have the technical and management skills? Running a brewery requires not only brewing expertise but also business management, staff hiring, and regulatory know-how.
With these foundations, you’ll be better placed to handle the sometimes-complex legalities involved in opening a brewery. Remember, careful upfront planning often prevents costly mistakes later down the track.
Step-by-Step Guide to Starting a Brewery in Australia
Every brewery journey looks a bit different, but most will follow similar steps to get up and running. Here’s a practical guide:
1. Research and Develop a Business Plan
As discussed above, begin by clarifying your vision, researching your market, and developing a detailed business plan. This should include your brewery’s target audience, business structure, funding sources, marketing strategy, and detailed financial projections.
2. Decide on Your Business Structure
The structure you choose will affect your liability, tax obligations, growth opportunities, and how you raise capital. Typical options include:
- Sole Trader: Easiest to set up, but you’re personally liable for the business’s debts and legal issues.
- Partnership: Shared ownership and responsibility between two or more people, but still with personal liability for each partner.
- Company (Pty Ltd): A separate legal entity that offers limited liability protection, allowing easier capital raising and credibility with suppliers and investors. Most breweries opt for this structure.
For more information, read our guide on the key differences between business structures.
3. Register Your Brewery Business
- Australian Business Number (ABN): All Australian businesses need an ABN. Registering is straightforward.
- Business Name: If your trading name is different from your own name or company name, you’ll need to register your business name.
- Company Registration (if relevant): Incorporate your company with the Australian Securities & Investments Commission (ASIC) and receive an Australian Company Number (ACN). Our how to start a small company guide explains this process.
- GST Registration: If your annual turnover will be $75,000 or above, you need to register for Goods and Services Tax (GST).
4. Find and Set Up a Location
Your premises must comply with local council planning, health, safety, fire, and building regulations. Be sure to:
- Check zoning and land use restrictions for breweries (production, retail, bar, etc.).
- Secure all required council approvals for fit-out, signage, and fire safety.
- If leasing, ensure your commercial lease agreement allows for brewing and on-site consumption (if applicable).
5. Obtain All Required Licences and Permits
This is a critical step, as brewing and selling alcohol is highly regulated. More details in the next section.
6. Protect Your Intellectual Property
- Consider registering your trade marks for your brewery name, logo and any unique beer names to prevent infringement or copycats.
7. Set Up Legal Documents and Compliance Systems
- Draft and implement all required legal documents, contracts, and workplace policies. More on this below.
8. Launch and Stay Compliant
- Once you’re legally set up and fully licensed, you can open your doors! Monitor your compliance, manage risk, and adapt as your business grows.
What Licences and Permits Do I Need to Open a Brewery?
Brewery businesses are among the most regulated in Australia due to liquor licence and production laws. Here’s what you’ll need to operate legally:
Producer/Wholesaler Licence (Liquor Licence)
In every state and territory, breweries must obtain a specific liquor licence to manufacture and sell beer. This is usually called a Producer/Wholesaler Licence (name varies by state – for example, Victoria issues a Producer’s Licence, NSW uses Producer/Wholesaler Licence, etc.). This licence allows you to:
- Brew alcoholic beverages for sale.
- Sell your beer wholesale, or on-premises (in a bar/taproom or restaurant attached to your brewery, subject to further conditions).
- Distribute your own products (subject to the conditions of the licence).
The application process is detailed and will consider your business structure, location and infrastructure, responsible service of alcohol training, security, and more.
Council Approvals, Planning and Health Permits
- Most councils require a Development Application (DA) to operate a brewery, especially if running a bar or restaurant on site. Check zoning permits for the chosen premises.
- You may need a Food Service Permit if you serve food alongside your beer (e.g. a brewpub or restaurant).
- Health, safety, and fire certificates are usually mandatory.
Excise Licence (Australian Taxation Office)
Any Australian brewery producing beer with more than 1.15% alcohol must register and obtain an excise manufacturer licence from the Australian Taxation Office (ATO). This allows you to legally manufacture alcohol for sale and ensures you’re paying the correct excise tax. Significant penalties apply for non-compliance. For a detailed breakdown, see the ATO’s guide to alcohol excise (external).
RSA (Responsible Service of Alcohol) Certificates
Anyone serving alcohol on-site (yourself, staff, bar managers) must hold a recognised RSA certificate for your state or territory. You’ll need to demonstrate your responsible service plans as part of your liquor licence application.
Environmental Permits
Some councils require environmental approvals for waste management, odour, and water use/disposal, as beer production can be a high-impact process.
It’s critical to apply for the right combination of licences for your business model – whether you’re strictly wholesale, direct sales, or also running a bar/restaurant. Missing even one permit can result in costly delays, legal action, or being shut down. When in doubt, seek expert legal advice on your licensing needs for your brewery.
Are There Other Legal and Compliance Requirements?
In addition to business registration and licensing, brewery owners must meet a range of broader legal obligations. Key areas to watch include:
Australian Consumer Law (ACL)
If you sell beer or merchandise direct to consumers (in a bar, taproom, bottle shop or online), you must comply with the ACL. This means your advertising must be honest, you must not engage in misleading & deceptive conduct, and consumers have clear refund rights. For more guidance see our guide to the ACL for businesses.
Employment Law and Workplace Safety
If you hire staff (bartenders, brewers, kitchen staff), you’ll need legal employment agreements and must comply with Fair Work Act requirements (minimum pay, safe workplace, anti-discrimination laws, superannuation, etc.). For breweries, particular attention is needed for workplace health and safety around brewing equipment and chemicals. A comprehensive workplace health and safety policy is a must.
Privacy and Data Collection
If your brewery captures customer data (through online orders, loyalty programs, or marketing lists), you’ll need a legally compliant Privacy Policy and must comply with the Privacy Act 1988.
Intellectual Property and Trade Marks
Your brewery’s name, logo, and even distinctive beer names or label artwork are valuable assets. Register your trade marks early to prevent infringers copying your brand and to build long-term brand value.
Supplier Agreements and Product Liability
If you partner with suppliers (malt, hops, equipment) or contract out production, use clear, written agreements to define responsibilities, quality standards, and risk allocation. As the beer producer, you have product liability obligations for the safety and quality of your products.
Importing/Exporting Beer
If you plan to sell outside Australia or import beer, there are specific customs, tax, and regulatory hurdles. Seek professional advice if this is part of your growth plan.
What Legal Documents Will I Need to Start a Brewery?
Putting the right legal documents in place early is vital to running a smooth, low-risk brewery. The specifics will vary, but most breweries should consider :
- Shareholders Agreement: If your brewery has multiple founders or investors, this document sets out ownership, decision-making, profit distribution, and dispute processes. It’s essential for minimising disputes and aligning expectations. See more in our guide to shareholder agreements.
- Employment Agreements: Legally required for each employee, outlining terms of employment, pay, entitlements, and workplace obligations.
- Supplier Agreements: Protects your interests in relationships with ingredient, packaging, equipment, and distribution partners.
- Customer Terms & Conditions: For any sales direct to consumers (in a taproom or online), clearly outline your returns/refunds policy and terms of sale, showing compliance with Australian Consumer Law.
- Privacy Policy: Required by law if collecting any personal data from customers, whether in person or via your website.
- Website Terms & Conditions: Sets the rules for using your website, managing liability and protecting your content and IP.
- Non-Disclosure Agreements (NDAs): Use these when discussing confidential recipes, brewing methods, or expansion plans with third parties.
- Workplace Safety Policies: Essential for protecting staff and meeting your obligations under workplace safety laws.
Not every brewery will need every document listed, but most will want several – especially if you plan to grow or bring on investors or staff. Having them professionally drafted and tailored to your circumstances is strongly recommended.
Alternative: Buying a Brewery or Franchising
If the full setup process above feels too daunting, another path is to purchase an existing brewery or to buy into a beer-related franchise model. This can help you skip some of the more complex licensing steps, but brings its own legal challenges, such as:
- Reviewing the business purchase agreement or franchise agreement
- Conducting legal due diligence to uncover hidden risks or liabilities
- Ensuring licences are properly transferred
- Understanding ongoing royalty, marketing, or franchise fees if franchising
Our team can help you review all legal documents and identify any “red flags” before you sign on, ensuring you’re not caught out by unexpected legal obligations or restrictions.
Key Takeaways
- Starting a brewery in Australia requires careful business planning and a detailed understanding of legal and licensing obligations.
- Choosing the right business structure (sole trader, partnership, or company) impacts your liability, tax, and growth potential.
- You must secure liquor, council, excise, and (if relevant) food service permits before brewing or selling beer.
- Compliance with workplace laws, Australian Consumer Law, and privacy obligations is vital for breweries of all sizes.
- Protect your brand, staff, and IP with the right legal documents, contracts, and workplace policies from the very start.
- Franchising or buying an existing brewery is an option, but brings different legal considerations and due diligence requirements.
- Seeking legal guidance early can save you time, money, and potential legal disputes as your brewery business grows.
If you would like a consultation on starting a brewery in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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