Australia cuts beer tax in the upcoming budget as government aims to boost economy in hospitality sector
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Time to crack open a cold one with the boys (and girls)! Scott Morrison announced that tax on beer will be slashed by 30 cents in the upcoming budget for the month of March despite heavy criticism that the tax cut is only beneficial to blokes.
The proposal to cut beer taxes is framed as an incentive to kickstart the economy and encourage people to get back in pubs and clubs following the last few years of slow economic growth as a result of Covid-19 restrictions. The cut is also expected to provide job opportunities in the hospitality industry after related businesses struggled to cope amidst the pandemic.
Image Credit: Unsplash
The CEO of Australian Hotels Association welcomed the bid, mentioning that businesses that suffered from the lockdowns would be ‘very pleased’ with the tax cut.
“Australia currently has the fourth-highest beer tax in the world," he said.
"We've been talking to the government about lowering the cost of living and lowering taxes and it seems like the government has heard.”
"One of the whole purposes of our request to lower the cost of beer excise has been to get people out socialising again, get people into the venues, get them out of home… and create jobs, so it sounds like fantastic news.”
At least 20 Coalition MP’s - the majority of whom are occupying marginal seats - have previously written to Treasurer Josh Frydenberg to show their support for the proposal.
A cut of that size would evidently bring the tax on a keg of beer down from $70 to $35, which translates to about a 40 cent cut for the cost of a pint, a 30 cents decrease for a schooner, and 20 cents slash for a pot.
It was initially flagged as under serious consideration just last month, with reports in News Corp newspapers that it would cost the federal budget nearly $153 million a year.
Brewers Association CEO John Preston previously pointed out that the initiative may not have as big of an impact on the government’s alcohol excise revenue, which is estimated to be around $7 billion annually, but it would have a massive impact on beer enthusiasts, and struggling pubs and clubs.
Andrew Clennell, Sky News’ political editor published today that the price cut is now officially locked in and will be announced in the next upcoming weeks as a cost of living measure.
However, not everyone is pleased with the price reduction. The Chief Executive of Spirits and Cocktails Australia, Greg Holland, called out the sexist nature of the tax cut.
Image Credit: Time Out
“Why would you deliver a tax cut that ignores the choices of nine out of 10 Australian women?” he argued.
“Imagine Scott Morrison or Treasurer Josh Frydenberg walking into a bar and shouting a round of beers for a bunch of blokes while turning their backs on the women enjoying a quiet gin and tonic or cocktail after work. It would be considered outrageously sexist and out of date – but that is exactly what this proposal represents.”
Mr Holland pushed for the price cut to deliver tax relief across the board.
“That would give distillers and the nearly 50,000 hospitality venues around Australia that don’t serve draught beer some much-needed relief after two tumultuous years of lockdowns and a bit of predictability as they forge ahead.”
As of the moment, Prime Minister Scott Morrison refused to confirm whether any discount plan would be implemented or if he’s weighing a cut to petrol excise, as oil prices continue to soar.
Although government sources say the petrol tax cut option is ‘in the mix’, the government is believed to be weighing up if such a measure is beneficial since it could easily be swallowed back up by further price increases.
“All these decisions for the budget will be announced on the 29th of March,” the Prime Minister reported.
What are your personal takes on the beer tax cut? Share it with us in the comments!
Want to see more details on the report? Watch the video below!
Video Credit: Sky News Australia
The proposal to cut beer taxes is framed as an incentive to kickstart the economy and encourage people to get back in pubs and clubs following the last few years of slow economic growth as a result of Covid-19 restrictions. The cut is also expected to provide job opportunities in the hospitality industry after related businesses struggled to cope amidst the pandemic.
Image Credit: Unsplash
The CEO of Australian Hotels Association welcomed the bid, mentioning that businesses that suffered from the lockdowns would be ‘very pleased’ with the tax cut.
“Australia currently has the fourth-highest beer tax in the world," he said.
"We've been talking to the government about lowering the cost of living and lowering taxes and it seems like the government has heard.”
"One of the whole purposes of our request to lower the cost of beer excise has been to get people out socialising again, get people into the venues, get them out of home… and create jobs, so it sounds like fantastic news.”
At least 20 Coalition MP’s - the majority of whom are occupying marginal seats - have previously written to Treasurer Josh Frydenberg to show their support for the proposal.
A cut of that size would evidently bring the tax on a keg of beer down from $70 to $35, which translates to about a 40 cent cut for the cost of a pint, a 30 cents decrease for a schooner, and 20 cents slash for a pot.
It was initially flagged as under serious consideration just last month, with reports in News Corp newspapers that it would cost the federal budget nearly $153 million a year.
Brewers Association CEO John Preston previously pointed out that the initiative may not have as big of an impact on the government’s alcohol excise revenue, which is estimated to be around $7 billion annually, but it would have a massive impact on beer enthusiasts, and struggling pubs and clubs.
Andrew Clennell, Sky News’ political editor published today that the price cut is now officially locked in and will be announced in the next upcoming weeks as a cost of living measure.
However, not everyone is pleased with the price reduction. The Chief Executive of Spirits and Cocktails Australia, Greg Holland, called out the sexist nature of the tax cut.
Image Credit: Time Out
“Why would you deliver a tax cut that ignores the choices of nine out of 10 Australian women?” he argued.
“Imagine Scott Morrison or Treasurer Josh Frydenberg walking into a bar and shouting a round of beers for a bunch of blokes while turning their backs on the women enjoying a quiet gin and tonic or cocktail after work. It would be considered outrageously sexist and out of date – but that is exactly what this proposal represents.”
Mr Holland pushed for the price cut to deliver tax relief across the board.
“That would give distillers and the nearly 50,000 hospitality venues around Australia that don’t serve draught beer some much-needed relief after two tumultuous years of lockdowns and a bit of predictability as they forge ahead.”
As of the moment, Prime Minister Scott Morrison refused to confirm whether any discount plan would be implemented or if he’s weighing a cut to petrol excise, as oil prices continue to soar.
Although government sources say the petrol tax cut option is ‘in the mix’, the government is believed to be weighing up if such a measure is beneficial since it could easily be swallowed back up by further price increases.
“All these decisions for the budget will be announced on the 29th of March,” the Prime Minister reported.
What are your personal takes on the beer tax cut? Share it with us in the comments!
Want to see more details on the report? Watch the video below!
Video Credit: Sky News Australia
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