Alcohol Tax Impact

ALCOHOL

AUSTRALIA | A new tax on alcohol enforced by the Australian Government is set to have a strong impact on consumers at the till.

The nation’s peak hospitality body is warning anyone who enjoys a drink to prepare for a price rise when the Federal Government’s excise on alcohol goes up yet again.  

Australian Hotels Association National CEO Stephen Ferguson said the crippling tax, which increases on August 1st, is another blow for everyday people struggling with the rising cost of living. 

“We are calling on the Government, Opposition and Cross Bench to support reducing the excise on all beer and spirits poured into a glass and served to a customer in a pub. It’s not the politicians who cop the grief from customers every time the business has to pass this hidden tax on – it’s the worker or owner behind the bar who cops it,” said Ferguson.

“This hidden tax - which has gone up every six months for the last 35 years - will hit pub-goers in the hip pocket at a time they can least afford it. Australia’s hidden beer tax rate is now the third highest in the OECD and the excise on beer and spirits this financial year alone will be nearly AUD $8 billion.” 

Ferguson said its nothing but a hidden tax on socialising, as well as a hidden tax on the jobs of young people pouring beer or making a gin and tonic. He added that pubs have a range of costs including energy, insurance, interest and wages that are all sky-rocketing

“Pubs have no control over excise and it adds up - it is the cumulative increase every six months that is the killer. For example, this hidden tax collected on beer in a small country pub selling 15 kegs is more than AUD $1,000 per week - that amount can make a huge difference to a small business in the bush,” he said.

“This is much more than just reducing a hidden tax on one of life’s small pleasures. The majority of our hotels are locally-owned family businesses that employ locals and sell Australian-made products. This hidden tax is just chipping away at pub customers when they can least afford it.”

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