Brewing Industry Concentration and the Introduction of the Beer Excise in Australia and New Zealand in the Late Nineteenth Century
In the Australian colonies and in New Zealand, British colonization was followed by the development of a flourishing brewing industry. Brewery numbers peaked in each colony in the late nineteenth century. The industry contracted subsequently to a small number of dominant cities, achieving high levels of concentration by the early twentieth century. One significant factor promoting concentration was the beer excise, introduced in each colony in the late nineteenth century. When six colonies combined in 1901 to create the Commonwealth of Australia, the federal government took responsibility for taxation of beer production, adopting a uniform excise rate and applying harsher administrative requirements that affected smaller breweries disproportionately. The operation of the beer excise in each of the Australian colonies (New South Wales, Tasmania, Victoria, South Australia, Western Australia, and Queensland) and in New Zealand, and the later uniform federal tax in Australia, are considered as factors promoting industry concentration.