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Soaking up the extra cost of beer

Western Plains App

Marnie Ryan

06 August 2022, 3:40 AM

Soaking up the extra cost of beerBar staff at Walgett Sporting Club Bella Morgan & Whitney Dennis are not looking forward to sharing the news with customers.

The post-work beer at the local pub will not be so refreshing as Australian beer prices in August are set to rise dramatically due to inflation rates.

 

Australians could be paying up to $15 a pint as beer taxes increase to record prices.

 

The tax on beer is set to increase by four per cent to $2.50 per litre, and the cost of a keg jumping to $4 a litre raising the cost to nearly $74, marking the largest tax increase on beer in the last 30 years.

 

Price increases for alcohol will be unavoidable as local bottle shops will also feel the price hike as carton prices will rise up to $18.80.


 

John Preston, CEO of the Brewers Association of Australia comments on the latest tax increase stating that Australian's are being taxed more than most nations.

 

"We have seen almost 20 increases in Australia's beer tax over the past decade alone, meaning Australian's are taxed on beer more than almost any other nation", CEO John Preston said.

 

The Brewers Association is pleading with the Albanese Government to excise the price of draft beer as the former Government proposed a reduction in beer tax in last year's budget.

 

“Brewers and pub and club operators were extremely disappointed the former Government did not deliver on a proposed reduction in beer tax at this year’s March Budget."

“Sadly, we’re now seeing the impact as pub patrons will soon be faced with the prospect of regularly paying around $15 for a pint at their local",

"Nonetheless, we believe there is a strong case for beer tax relief to be provided by the new Federal Government - with the hidden beer tax to go up again in February 2023", said CEO John Preston said.

 

Impacts from the tax increase will be detrimental for small pubs and clubs who are still experiencing the negative effects of the COVID-19 pandemic.

 

“For a small pub, club or other venue the latest tax hike will mean an increase of more than $2,700 a year in their tax bill – at a time when they are still struggling to deal with the on-going impacts of the pandemic", CEO John Preston said.

 

Clubs and pubs experience a CPI (Consumer Price Index) increase twice a year in February and August.

 

Manager of the Walgett Sporting Club Natalie Thurston says the CPI tax increase is compulsory however the recent tax hike was unexpected and had all parties on edge.

 

"We usually are given prices from manufacturers weeks in advance before the CPI increase. This year we were only given prices last week," she said.

 

"Manufacturers were extremely cautious this year due to the huge increase in beer tax and were reluctant to give rural pubs and clubs beer prices"

 

Natalie says the beer tax increase has direct impacts on all members of the community.

 

"A lot of community clubs and services rely on bowling club grants and donations for additional funds," said Natalie.

 

"Rural communities, like Walgett have a very limited population. As the beer tax increases, the club will have a downturn in customers."

 

"Rural and remote clubs and pubs will dwindle down to nothing and this will have huge impacts on the community," she said.

 

Manager of Cobar Services Club Linda Carter is concerned for the future of rural pubs and clubs saying that the most recent beer tax increase will end many businesses within the area. 

 

"Rural clubs and pubs are struggling now. The increased cost of wages, cost of living including food, electricity, fuel and now this. Members of the community won't be able to bounce back and definitely won't be able to afford to go out".

 

"Most members of our club are ordinary working citizens with limited budgets. When the beer price increase goes ahead, they will not be able to afford to come to our club"

 

"People don't mind prices gradually going up, but this huge increase in beer tax will kill our industry," Mrs Carter said.

 

Treasurer Jim Chalmers told ACM he will listen to any ideas to stem price rises.

 

"Having inherited a trillion dollars in debt, and with lots of other pressures on the budget, it's not possible to fund every one of them," he said.