25/09/24
QHA and AHA continue to pursue the Australian Government over the need to pause the excise rate right across the industry for all alcoholic drinks. Australians face paying more for beer and spirits in pubs, clubs and bottle shops as the latest federal alcohol tax increases take effect. It provides another unwelcome impost for drinkers amid the cost-of-living crisis as well as threatening jobs and fuelling inflation. It should be noted that the current tax rate for full strength beer and spirits in Australia is the third highest rate in the OECD
Freeze Liquor Excise
The AHA and QHA have been advocating to the Government to freeze the excise rate for all liquor at its current rate for 12 months. The following considerations are relevant and support this proposition:
- The increase in beer tax which takes effect every 1 February and 1 August each year means that the tax has gone up by around 8 per cent in the past six months
- Hotels are having to pass on almost 90 cents of tax on every pint of beer they pour
- We estimate that these increases will cost a small pub around $5,400 a year and come after several years of difficult trading conditions including those associated with COVID-19 restrictions.
- Not create a further price disincentive for people to visit their local hotel, thus decreasing business sustainability and confidence.
The reasons for a freeze (at the very least, let alone a reduction in the tax), particularly on draught beer, are simple. An excise tax on draught beer is unfair because:
- Every beer poured from a keg into a glass creates jobs
- Beer underpins the trade of all pubs (and clubs), with beer accounting for around 70% of all alcohol sales
- This is a product which generates a high degree of labour should not have a tax (excise) placed upon it
- It is a triple tax on the people who consume the product, the businesses which sell it and the workers who make or pour it
- Excise is a hidden tax which inhibits employment and is becoming too expensive for many Australians who have already had a tough couple of years.
With a planned program across all media, in every state the AHA and QHA as members to keep this discussion going with all candidates for election when they need our support. Read more here
Courier Mail – We could soon pay less for beer – but there’s a catch
9 News – Coalition calls for alcohol tax freeze as inflation drives prices up for pubs and patrons