Beer drinkers beware: your favourite tipple is about to get a whole lot more expensive!
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To our beer-loving folks out there, it looks like you might soon be paying more for a pint at the pub…
In its semi-annual CPI indexation review, the Australian Tax Office lifted the tax on a frothy by 4% (or $2.50 more per litre). It was the largest increase in over 30 years, according to the Brewers Association of Australia.
'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,' said John Preston, CEO of the association.
'Australians are taxed on beer more than almost any other nation. We have seen almost 20 increases in Australia's beer tax over the past decade alone,' he added.
Following the largest tax increase in more than three decades, the cost of a pint at the pub rose to $15. Credit: iStock.
If you're thinking of buying your own drinks at the bottle shop instead to save some cash, we have some more bad news for you.
Even buying your own drinks at a bottle shop won't help you avoid the increase since prices will go up to $18.80 per carton as well.
The Brewers Association is asking for government relief and expressed its 'disappointment' that the previous administration did not implement a proposed cut in beer tax in this year's March Budget.
Mr Preston also mentioned that with this tax increase, it wouldn't just be pub patrons who will be affected.
'For a small pub, club or other venues, the latest tax hike will mean an increase of more than $2700 a year in their tax bill – at a time when they are still struggling to deal with the ongoing impacts of the pandemic,' he said.
'This is a problem that the new Treasurer has inherited from his predecessors, and there are many competing demands on the Budget.'
'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.'
Jim Chalmers, the current administration's treasurer, has also promised to investigate possible relief but has not yet committed to eliminating the tax.
The latest tax increase means that a small pub, club, or other venues will have to pay more than $2700 more in taxes each year. Credit: Saeed Khan/AFP/Getty Images.
The tax on beer in Australia is changed twice a year based on inflation, which is growing at its fastest rate in more than 20 years and isn't expected to reach its highest point until the end of the year.
The excise on each litre of pure alcohol in a pub-served, full-strength beer poured from a keg will increase by $1.51 to $39.27. On the other hand, the excise tax on packaged beer will go up by $2.14 to $55.73 per litre of alcohol.
Pub owners and brewers also say that pots, pints, and schooners are getting more expensive because labour, energy, ingredients, and other costs have gone up.
According to data collected by the Global Drug Survey (GDS), Australians are the world's heaviest drinkers, having spent more time drunk in 2020 than any other country.
Apparently, Aussies consumed alcohol to the point of intoxication an average of 27 times per year, nearly double the global average of 15.
We do love a frothy pint! (Guess that explains the heavy taxes, eh?)
What do you think, folks? Do you think this price increase will make people drink less? Let us know in the comments!
In its semi-annual CPI indexation review, the Australian Tax Office lifted the tax on a frothy by 4% (or $2.50 more per litre). It was the largest increase in over 30 years, according to the Brewers Association of Australia.
'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,' said John Preston, CEO of the association.
'Australians are taxed on beer more than almost any other nation. We have seen almost 20 increases in Australia's beer tax over the past decade alone,' he added.
Following the largest tax increase in more than three decades, the cost of a pint at the pub rose to $15. Credit: iStock.
If you're thinking of buying your own drinks at the bottle shop instead to save some cash, we have some more bad news for you.
Even buying your own drinks at a bottle shop won't help you avoid the increase since prices will go up to $18.80 per carton as well.
The Brewers Association is asking for government relief and expressed its 'disappointment' that the previous administration did not implement a proposed cut in beer tax in this year's March Budget.
Mr Preston also mentioned that with this tax increase, it wouldn't just be pub patrons who will be affected.
'For a small pub, club or other venues, the latest tax hike will mean an increase of more than $2700 a year in their tax bill – at a time when they are still struggling to deal with the ongoing impacts of the pandemic,' he said.
'This is a problem that the new Treasurer has inherited from his predecessors, and there are many competing demands on the Budget.'
'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.'
Jim Chalmers, the current administration's treasurer, has also promised to investigate possible relief but has not yet committed to eliminating the tax.
The latest tax increase means that a small pub, club, or other venues will have to pay more than $2700 more in taxes each year. Credit: Saeed Khan/AFP/Getty Images.
The tax on beer in Australia is changed twice a year based on inflation, which is growing at its fastest rate in more than 20 years and isn't expected to reach its highest point until the end of the year.
The excise on each litre of pure alcohol in a pub-served, full-strength beer poured from a keg will increase by $1.51 to $39.27. On the other hand, the excise tax on packaged beer will go up by $2.14 to $55.73 per litre of alcohol.
Pub owners and brewers also say that pots, pints, and schooners are getting more expensive because labour, energy, ingredients, and other costs have gone up.
According to data collected by the Global Drug Survey (GDS), Australians are the world's heaviest drinkers, having spent more time drunk in 2020 than any other country.
Apparently, Aussies consumed alcohol to the point of intoxication an average of 27 times per year, nearly double the global average of 15.
We do love a frothy pint! (Guess that explains the heavy taxes, eh?)
What do you think, folks? Do you think this price increase will make people drink less? Let us know in the comments!
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