As the sun sets on another day, many Australians look forward to unwinding with a cold beer at their local pub.

However, the quintessential Aussie experience of enjoying a frothy with mates is set to become a pricier affair, not just because of inflation or the rising cost of living.

There's a specific culprit behind the scenes: the tax on beer is poised for yet another hike.



The Australian craft beer industry, a vibrant and innovative sector, has been a source of national pride.

According to KPMG data, it contributes a staggering $1.93 billion annually to the economy and employs over 10,000 individuals, representing more than half of the entire beer industry's workforce.


Over the past eight years, the number of craft breweries has skyrocketed by an impressive 80 per cent.

Yet, despite this boom, the industry faces a sobering reality, with at least 20 breweries closing their doors in the past year alone.

Small brewers grapple with higher production costs compared to their larger counterparts and the current economic climate, which has tightened consumers' purse strings nationwide.

But the most pressing issue is the relentless rise of the beer excise tax, adjusted every six months in line with the Consumer Price Index (CPI) increases.

The Brewers Association of Australia has highlighted that the last two adjustments, in August of the previous year and February of this year, resulted in an 8 per cent tax increase.

This placed Australia uncomfortably high globally, with the third highest beer tax, trailing only behind Norway and Finland.



With another CPI indexation looming on 31 July, the writing is on the wall: beer taxes are expected to climb even higher.

For small brewers to stay afloat, they have little choice but to pass on some of this financial burden to their customers.

Joel Meaney, Operations Manager at Dad and Dave's Brewing in Brookvale, Sydney, painted a stark picture, revealing that a third of the price on every glass of beer sold is tax.

‘We have to put the price up by a cost of $1 or $2 each time (the tax increases),’ he said.

‘I'm not sure how it will affect us going forward, but we've made it this far.’

Despite the grim outlook, these crafty brewers are not raising the white flag just yet. To keep patrons coming through the doors during these tough economic times, they had to ‘think outside the box’ and absorb some of the tax hike themselves.



The upcoming BeerFest Sydney, scheduled for December in Tumbalong Park, Darling Harbour, aims to showcase Sydney's craft beer scene.

While the festival will celebrate the art of brewing, it also serves as a platform to send a crucial message: supporting local producers is more important than ever.

James Harding, co-director of BeerFest, emphasised the symbiotic relationship between brewers and their customers.

‘Brewers get to learn from their customers, and they, in turn, get to learn the blood, sweat and tears that goes into making their brews,’ he said.

‘But amidst the festivities, a clear message resounds – supporting our local producers is more crucial than ever.’
What do you think about the upcoming beer hike, members? Let us know in the comments below.