Australia: Brewers Association slams latest excise hike

Beer drinkers and the hospitality sector have been hit with higher taxes from February 1 as government excise once again increased, the Brewers Association of Australia said in an official press-release.

With the hospitality sector still battling to recover from the economic impacts of Covid-19 and many households facing real economic uncertainty, this is a terrible time for a further tax increase on beer, the Association said.

Australians already pay the fourth highest beer tax in the industrialised world and these continued increases are damaging the brewing industry and the nation’s hospitality sector.

Australians have demonstrated consistently that they understand the importance of drinking in moderation with Australian alcohol consumption now at its lowest levels since the 1970s – local drinkers have earned some relief.

Many beer drinkers will feel the impact of the tax increase, especially at a time of real cost of living pressures.

Australia’s tax regime is out of step with many other similar countries. Early last year, in response to the Covid-19 pandemic Germany deferred its beer tax from the equivalent of 13 Australian cents to zero and Britain froze its beer tax at $1.52 (AUD).

The US Federal Government also passed legislation at the end of December making permanent significant tax relief for large and small brewers. This will lock in a permanent tax rate of $0.31 (AUD).

Meanwhile Australia’s current rate of $2.26 per litre increased again as of February 1.

Brewers Association of Australia CEO John Preston said, “Another excise increase is bad news for the hospitality sector, the Australian brewing industry and everyone who enjoys a beer. Many other countries, including recently the USA, have reduced taxes on beer to stimulate the economy and help households doing it tough.

“Any move by the Government to take the pressure off will be celebrated by the more than 9 million Australian beer drinkers.”

02 February, 2021