Fitzy’s Toowoomba joins calls for Federal Government to wind back draught beer tax hike

It’s enough to make beer lovers cry into their schooners as Toowoomba venues call for urgent action to cut the draught beer tax which goes up again. Here’s how much the amber drop will cost you now.

Taxes are one of life’s few certainties, but as the Federal Government’s biggest tax hike on draught beer in ten years comes into effect today already struggling pubs and clubs have begged to be spared from the excise on the amber nectar.

According to the Australian Hotels Association, Australia already has the fourth highest beer tax in the world, which has gone up twice a year for the past 35 years.

Tuesday’s increase will take the draught beer rate to $36.98 per litre of alcohol – a 2.1 per cent increase for the six-month period – the highest amount in past 10 years.

Fitzy’s Toowoomba general manager Brad Fitzgibbons called on the Federal Government to wind back the tax and give hospitality venues the chance to pass on savings to their customers, or use the money to keep staff in a job.

“What we’re looking for is a 50 per cent decrease on the overall taxation on draught beer,” he said.

“That would mean anywhere between 30c to 50c less for a schooner of beer for customers, and it would allow businesses who have been doing it a bit tough lately to use those funds to recruit new staff or entice patrons to the business.

“Hospitality businesses have paid their fair dues to the community, we’ve done what the government has required of us. We’ve closed when we’ve been told to, I think we’ve done our fair share so all we’re asking for is a bit of relief that we can pass on to customers and help us cutting some costs so we can put more staff on.”

Brewers Association of Australia chief executive John Preston said a 50 per cent cut in draught beer would reduce the Federal Government’s revenue from alcohol tax by only $150 million a year, or around five per cent of total beer taxes collected.

He said the Federal Government had an opportunity in the upcoming federal budget to give pubs and clubs a fighting chance. It will also provide relief for everyday beer drinkers.

“We are very concerned that on February 1, Australian beer drinkers will cop the biggest beer tax increase in more than a decade – it’s not right and it’s not sustainable. Other countries have been reducing their tax on draught beer to give pubs and beer drinkers a break,” Mr Preston said.

He said 11 million Australians visited a local pub or club at least once every three months and the industry employed hundreds of thousands of Australians.

“The industry is telling us they want to help out their patrons as well as employ more as they rebuild,” Mr Preston said.

“But the high level of tax is holding them back.”

Originally published as Fitzy’s Toowoomba joins calls for Federal Government to wind back draught beer tax hike