Australia: Leading brewers hit back at calls for ‘radical’ alcohol tax policy changes

Australia’s beer barons have hit back at calls for a “radical” policy shift that would hike the tax on draught beer by up to 500 per cent and reduce Australia’s alcohol consumption, the Illawarra Mercury reported on January 4.

The Foundation for Alcohol Research and Education (FARE) wants draught beer to be taxed at the same rate as bottles and cans, rather than the discounted tax rate it now enjoys. FARE says this would raise an extra A$2.9 billion while cutting alcohol consumption by more than nine per cent.

But the brewing lobby has blasted the plan as “lazy and flawed”.

Brewers Association of Australia (BAA) CEO Brett Heffernan said tax was already the “single most expensive ingredient in beer”.

“Firstly, when it comes to cheap alcohol products, beer is not one of them,” he said.

“Secondly, price is not a pressure point for those who misuse alcohol. It’s lazy and flawed policy ... it penalises the vast majority who drink responsibly while doing nothing for those few at risk of harm.”

He claimed Australians already pay heavy tax on beer.

“Any Aussie venturing overseas who has slicked their thirst with a cleansing ale knows we pay a premium for beer in Australia.”

BAA represents brewing giants Carlton & United, Cooper and Lion.

FARE’s plan proposes tax on light beer at pubs be increased five-fold, tax on mid-strength beer be doubled and tax on full-strength beer tax be increased by half.

04 January, 2018