Blackflag brewery claps back at beer tax as breweries struggle

A Queensland brewery has hit back at a beer tax it says is making the great Aussie pastime of a pint at a pub an unaffordable luxury and has called for an overhaul of the system.

A Sunshine Coast-based brewery has hit back at a beer tax it says is making the great Aussie pastime of a pint at a pub an unaffordable luxury and has called for an overhaul of the system.

Blackflag Brewing is a Sunshine Coast-based independent brewery that is well known for its line of beers.

They posted a video on social media as a tongue-in-cheek way to raise awareness of the effect of the excise on the increasing price of beer.

The brewery owners used a schooner to point out the sobering fact that even though a key ingredient in beer is hops, excise tax “harvested straight from the bureaucratic minefields of Canberra” makes up almost half the cost of that schooner.

“It’s the sting in every schooner”, the video stated.

Blackflag Brewing community manager Craig Williams said this was an unsustainable state of affairs.

“We believe that enjoying a beer with friends at the pub is a quintessential part of the Aussie culture and lifestyle, and at the end of the day, the ever increasing beer excise is helping to make this enjoyable pastime an unaffordable luxury,” Mr Williams said.

The Blackflag brewing company. Picture: Patrick Woods.

The Brewers Association of Australia website stated beer excise was linked to CPI and inflation, and was increased every six months.

Brewers have faced twice-yearly increases since 1983.

Since February 2020, excise tax on beer has increased by 20 per cent overall and on February 3 this year, the latest increase took it up by two to three per cent.

The association stated the cost of a schooner could soon hit record levels and wine was taxed differently and did not change every six months.

It stated at least 47 independent brewing businesses had entered voluntary administration or closed down in the past two years.

It cited polls showing 58% of Australian voters wanted the excise tax rates to stop increasing.

Mr Williams said the excise had negatively impacted Blackflag and the other Sunshine Coast breweries.

“Right now across Australia, all breweries are facing increased costs across ingredients, transport, container deposit schemes and excise,” Mr Williams said.

“We have to choose whether to pass those costs on to customers, who are themselves challenged by the cost of living crisis.

“It’s a nightmare situation, because every price rise means that more and more customers simply can’t afford to enjoy a beer at the pub with mates.”

The brewery is pleading with the government to undertake a much-needed overhaul of liquor excise.

Mr Williams said the business was not asking for a pause in the twice yearly excise increases.
“We’re asking for a complete overhaul of the system instead,” he said.

“At the end of the day, we want to pay tax, but a tax that’s reasonable and not dictated by half yearly increases with no end in sight.”

The Australian Taxation Office has been contacted for comment.