Too soon for schooners? Amid cost-of-living woes plaguing Aussies, beer set for impending price hike
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Here’s a taste of bitter reality, at least for those who enjoy drinking: a night of cheap beer might soon be a thing of the past as the price of beer is set to rise yet again.
Effective Wednesday, February 1, the excise tax on beer will increase by 3.7 per cent.
This would push the price of an average schooner to about $12 and a pint to $15, according to reports.
Last year, prices saw a massive spike after the largest tax hike in three decades was imposed on beer at 4 per cent.
The ABC pointed out that this most recent 3.7 per cent hike occurs on top of the previous 4 per cent one, bringing the cumulative tax increase on beer since last August to 7.7 per cent.
The changes are part of the regular six-month adjustments made by the government on inflation rates.
Last year, inflation reached a sky-high 7.8 per cent overall, driven partly by downstream effects of Russia’s invasion of Ukraine and inclement weather in Australia’s prime centres of production in the east.
This has led to expectations that this year’s tax on beer would adjust accordingly.
In response, The Brewers Association of Australia is pushing for a two-year tax freeze on bottled beer and for the excise on tap beer slashed by 50 per cent in the upcoming May budget deliberations.
‘Australia has the fourth highest beer tax in the world and that's really hurting our hospitality sector,’ said Chief Executive John Preston.
‘We have asked the government just to take some moderate steps to reduce that burden and provide a bit of relief to beer drinkers.’
The Brewers Association has long been calling for a tax reprieve from the government, highlighting that Australians pay the fourth highest beer tax in the world.
In the 2020-2021 fiscal year, the government sourced $2.5 million through its taxes levied on beer.
A spokesperson for the Treasury knocked back the group’s proposal.
‘This is the usual, automatic indexation change that happens twice a year under governments of both persuasions and it's not a new decision of this government,’ a spokesperson said.
‘We listen respectfully to ideas put to us but these have to be weighed up against other priorities and fiscal challenges — with a budget that's heaving with a trillion dollars of debt.’
Meanwhile on social media, many aired their sadness at what this recent tax hike on beer.
‘Very sad, the days of get togethers for a few drinks are dying.The old pub days are disappearing,’ one man said.
‘I don’t know how pubs keep going, Pubs will start closing, though they have been (for) years,’ another man feared.
And a third commented, ‘It’s a bit un-Australian isn’t it? To put (the beer tax) up when everyone’s doing [it] a bit tough.’
If there’s ever a silver lining to such a development, it is that it may further turn many Australians away from alcohol by making it a more costly habit to maintain.
In 2021, a study found that Australia ‘is the drunkest country in the world’, with many Aussies drinking to the point of intoxication an average of 27 times annually.
Perhaps in connection with what appears to be an unchecked drinking habit for some, an anonymous physician aired his concerns last year that society at large is making it too easy for people to buy alcohol.
On that note, if you or anyone you know are dealing with alcohol-related problems, we strongly encourage getting in touch with services like ReachOut or the Australian Alcohol and Drug Information Service by calling them on 1800 250 015.
Source: YouTube/ABC News Australia
In related news, new guidelines in Canada on drinking have taken on a conservative stance against alcohol, with no amount of intake being considered ‘safe’.
One allegedly drunk woman was also thrown out of a Jetstar flight — much to the glee of co-passengers who heckled her with a 1960s classic song.
What are your thoughts, folks? Are you bracing for the price increase? Or do you think it's high time beer temporarily be exempt from future tax hikes?
Let us know in the comments!
Effective Wednesday, February 1, the excise tax on beer will increase by 3.7 per cent.
This would push the price of an average schooner to about $12 and a pint to $15, according to reports.
Last year, prices saw a massive spike after the largest tax hike in three decades was imposed on beer at 4 per cent.
The ABC pointed out that this most recent 3.7 per cent hike occurs on top of the previous 4 per cent one, bringing the cumulative tax increase on beer since last August to 7.7 per cent.
The changes are part of the regular six-month adjustments made by the government on inflation rates.
Aussies are set to see another hike in beer prices in six months with the latest round of beer tax increase. Image Credit: Pexels/Tembela Bohle
Last year, inflation reached a sky-high 7.8 per cent overall, driven partly by downstream effects of Russia’s invasion of Ukraine and inclement weather in Australia’s prime centres of production in the east.
This has led to expectations that this year’s tax on beer would adjust accordingly.
In response, The Brewers Association of Australia is pushing for a two-year tax freeze on bottled beer and for the excise on tap beer slashed by 50 per cent in the upcoming May budget deliberations.
‘Australia has the fourth highest beer tax in the world and that's really hurting our hospitality sector,’ said Chief Executive John Preston.
‘We have asked the government just to take some moderate steps to reduce that burden and provide a bit of relief to beer drinkers.’
The Brewers Association has long been calling for a tax reprieve from the government, highlighting that Australians pay the fourth highest beer tax in the world.
In the 2020-2021 fiscal year, the government sourced $2.5 million through its taxes levied on beer.
A spokesperson for the Treasury knocked back the group’s proposal.
‘This is the usual, automatic indexation change that happens twice a year under governments of both persuasions and it's not a new decision of this government,’ a spokesperson said.
‘We listen respectfully to ideas put to us but these have to be weighed up against other priorities and fiscal challenges — with a budget that's heaving with a trillion dollars of debt.’
The Brewers Association has pointed out that Australia is among the countries that pay the highest beer tax in the world. Image Credit: Pexels/Nataliya Vaitkevich
Meanwhile on social media, many aired their sadness at what this recent tax hike on beer.
‘Very sad, the days of get togethers for a few drinks are dying.The old pub days are disappearing,’ one man said.
‘I don’t know how pubs keep going, Pubs will start closing, though they have been (for) years,’ another man feared.
And a third commented, ‘It’s a bit un-Australian isn’t it? To put (the beer tax) up when everyone’s doing [it] a bit tough.’
In 2021, a study found that Australia ‘is the drunkest country in the world’, with many Aussies drinking to the point of intoxication an average of 27 times annually.
Perhaps in connection with what appears to be an unchecked drinking habit for some, an anonymous physician aired his concerns last year that society at large is making it too easy for people to buy alcohol.
On that note, if you or anyone you know are dealing with alcohol-related problems, we strongly encourage getting in touch with services like ReachOut or the Australian Alcohol and Drug Information Service by calling them on 1800 250 015.
Source: YouTube/ABC News Australia
In related news, new guidelines in Canada on drinking have taken on a conservative stance against alcohol, with no amount of intake being considered ‘safe’.
One allegedly drunk woman was also thrown out of a Jetstar flight — much to the glee of co-passengers who heckled her with a 1960s classic song.
What are your thoughts, folks? Are you bracing for the price increase? Or do you think it's high time beer temporarily be exempt from future tax hikes?
Let us know in the comments!
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