Start a Small-Batch Craft Distillery

Make gin, vodka or whisky in your own small distillery and sell through a cellar door, bottle shops and online.

Copper stills and fermentation tanks inside a working distillery.
Startup costA$80k to A$350k
Monthly revenueA$4k to A$20k
Time needed30+ h/week
First incomeMonths

Estimates for a small start in Australia, not guarantees.

What it is

A small premises with a still where you produce spirits such as gin, vodka, rum or whisky, and bottle them under your own brand. Many small distilleries add a tasting room or cellar door.

Your first three steps

  1. Do a distilling course or work a few shifts at a small distillery to learn the process and costs
  2. Price up a small still, premises and fit-out, and ask your local council about zoning and approvals
  3. Contact the ATO about a distiller excise licence and your state liquor regulator about a producer licence before you buy equipment
Who pays

Bottle shops, bars, restaurants, gift buyers, tourists visiting the cellar door and online customers.

How it makes money

Bottle sales direct to customers earn the best margin, with wholesale to venues and shops adding volume. Tastings, tours and gift packs can add extra income. Excise is a major cost.

Skills that help
  • Learning distilling and safe handling of spirits
  • Product development and tasting
  • Selling, branding and customer service
Watch out for
  • Excise licence and ongoing excise reporting with the ATO
  • State liquor licence for production and any cellar door sales, rules differ by state and territory
  • Fire, flammable liquid storage and building rules, check with your council and fire authority
  • Public liability and product liability insurance, plus property cover
  • Long lead time before revenue, especially for aged spirits like whisky

🔒 Full research report for Australia

Real cost breakdown with current prices, licences and registration checklist, local competition, pricing, break-even and a 30-day launch plan, with sources.

Coming soon

Questions people ask

How much does it cost to start a craft distillery in Australia?

Estimates suggest startup costs are typically around $80,000 to $350,000, depending on your still, premises, fit-out and whether you add a cellar door. Treat this as a rough guide and get quotes for equipment and premises before committing.

What licences and rules apply to a small distillery in Australia?

Things to check include an excise licence and ongoing excise reporting with the ATO, and a state liquor licence for production and any cellar door sales (rules differ by state and territory). Also check fire, flammable liquid storage and building rules with your council and fire authority.

How much revenue can a small craft distillery make?

Estimates suggest monthly revenue is typically around $4,000 to $20,000, depending on your products, sales channels and cellar door. Also check the long lead time before revenue starts, especially for aged spirits like whisky.

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Photo: Richard442 on Pixabay

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