Your favourite drink is about to get a lot more expensive as the biggest hike of Australia’s beer tax in 30 years kicks in and pubs call for cost of living relief
- The biggest beer tax hike in 30 years is set to add $4 to the price of a keg of grog
- Industry chiefs warn it could push the price of a pint of beer up to almost $15
- The six-monthly index-linked tax increase is caused by the soaring inflation rate
- Brewers have called for the tax to be slashed in Labor’s next budget in October
That thirst for VB is about to become even more hard-earned. The price of a schooner is set to soar with the biggest hike in beer tax for 30 years kicking in today.
The price of a carton of your favourite grog will go up by 80c from Monday under the 4 per cent index-linked tax increase because of the soaring inflation rate.
The cost of a keg will go up about $4 to nearly $74 while the tax on a pint will go from 80c to 84c, pushing the price in a pub towards $15, say industry chiefs.
Australia already had the fourth highest beer tax in the world, with the industry hit by index-linked tax hikes twice a year under the current system.
Now the beer lobby is begging the Labor government to slash the tax in their October budget and ease the pain for beer-lovers.
The cost of a schooner will soar with the largest rise in beer tax for 30 years kicking in today
The cost of a keg will go up about $4 to nearly $74 while the tax on a pint will go from 80c to 84c, pushing the price in a pub towards $15, say industry chiefs
‘We thought there was a real opportunity at the last federal budget to cut the beer tax,’ John Preston of the Brewers Association told Nine’s Today show.
‘We had a lot of support and we were really disappointed that didn’t happen. There was a real opportunity there.
‘The federal government can step in and do something about it and we’ll be talking to the new government about this as we approach the budget in October.
‘But also more generally as we move forward – as these increases keep happening.’
Drinkers will face yet another price hike in February 2023 – and it could be even bigger, with inflation tipped to hit 7.75 per cent in December.
‘Australians are taxed on beer more than almost any other nation,’ Mr Preston said.
‘Sadly, we’re now seeing the effect as pub patrons will soon be faced with the prospect of regularly paying around $15 for a pint at their local.’
Drinkers will face yet another price hike in February 2023 – and it could be even bigger, with inflation tipped to hit 7. 75 per cent in December
Prospects of a beer tax cut in Treasurer Jim Chalmers first budget seems unlikely though with the government warning they face a financial black hole of debt.
‘Our objective is to make sure that Australians actually get bang for buck for the taxes that they pay in the budget,’ warned Dr Chalmers last week.
The Coalition government had reportedly pencilled in a 50 per cent cut in the tax last March, but it was scrapped at the last moment.
‘It would have a tiny impact on the government’s alcohol excise revenue, which is around $7 billion a year,’ added Mr Preston.
‘But it would have a big impact for beer drinkers, and struggling pubs and clubs.’
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