Coalition mulling over beer tax as businesses cry out over $15 schooners

The Coalition is considering an overhaul of beer excise, as the price of schooner hits $15 in some pubs and hoteliers say the tax is killing the industry.

Making beer cheaper is shaping up to be a key Coalition election policy as part of a suite of tax reforms the Liberal and Nationals will consider taking to the polls.

It comes as publicans warn the skyrocketing cost of a schooner is pushing Australians to drink in unregulated environments, including at home, and driving up the risk of bad behaviour.

Nationals Leader David Littleproud will meet with members from the Australian Hotels Association in Coffs Harbour on Monday to discuss the issue of the steep beer excise which is making Australian schooners some of the highest taxed beer in the world.

Berr tax critics say the price of a schooner is preventing people socialising. Stock picture: David Geraghty

“We are hitting a tipping point, it will have serious consequences,” he said.

“Many of our small businesses are going to start laying off staff because people won’t have money for another increase in excise.

“We’ve seen 18 consecutive increases in excise.”

The reform was flagged at the Nationals Federal Conference last week by MP Pat Conaghan who also moved a private members bill on the issue.

But Mr Littleproud said reforming the excise — including a pause — was being looked at within the Coalition because of the serious impacts on small businesses.

“We are looking at it in totality with other tax changes … it’s beholden on all of us to (consider this),” Mr Littleproud.

The Sunday Telegraph understands several Liberals are also getting on board with the Nationals’ poll pitch.

“There is growing concern from everyone in the Coalition,” Mr Littleproud said.

“When you already have lower disposable income, they (pub owners) fear the continuation of the excise increase is a nail in the coffin.

“We could see more job losses.”

Alistair Flower owns the Settlers Inn in Port Macquarie as well as 6 other venues. Picture: Nathan Edwards

Some within the Coalition are concerned about the budget implications of any changes to the excise while others are wary of potential blowback from domestic violence advocates over making alcohol cheaper.

But Flower Hotels group owner Alistair Flower who runs the popular Port Macquarie pub the Settlers Inn said pubs were the most regulated and safe environment to be drinking alcohol.

“The local public bar is the safest place to enjoy a beer, we have RSA agents, compliance measures, and we encourage mid strength beer,” he said.

“What people will do instead of buying beer is they will buy a bottle of vodka and go home and drink it at home or in an unregulated environment.

“There is no one controlling them if someone is going to have a litre of vodka in a park.”

Last month domestic violence advocates wrote to Anthony Albanese and state and territory leaders calling for a suite of alcohol reforms including regulating access in the home.

Federal Nationals Leader David Littleproud. Picture: NewsWire

Suggested reforms included no alcohol deliveries or takeaway after 10pm and a two hour pause between alcohol being ordered and delivered.

Mr Flower said neighbourhood pubs were also crucial for connection but the cost of beer was preventing people from going out.

“The schooners can range from $7 and $10 and when you go into Sydney it can be $9 to $15,“ he said.

“It’s quite unsustainable, we have a lot of people who enjoy coming to the pub for inclusion and connection, especially pensioners.”

Kempsey pub the Great Northern Hotel owner David Richards has run the venue for 20 years.

He said the situation had become so dire he was now selling a Tooheys New schooner at 14 per cent less than what he should be to maintain a margin.

“That’s not a sustainable business model and we’re at the point where we will have to pass on the full excise increase onto our customers, who then stop coming in because the cost of a drink is too high,“ he said.

“No customers means no trade which means fewer jobs.”

Originally published as Coalition mulling over beer tax as businesses cry out over $15 schooners