Brewers, hoteliers push for relief from increase in alcohol excise

Have you been drowning your sorrows over the ever-increasing cost of living? Then we have some bad news for you.

Pubs, bars and bottle shops are the latest battleground in the cost-of-living crisis, with the price of beer, wine and spirits set to go up from Monday when federal government taxes on alcohol are hiked again.

From next week, Australian drinkers will be paying $101.85 in tax per litre of pure alcohol, with budget papers predicting the alcohol excise will collect $7.86 billion in revenue this financial year.

The alcohol excise automatically increases twice a year, based on rates of inflation.

The tax is expected to generate almost $9 billion in the 2027 financial year, meaning Australians will pay about $1 billion in additional tax on booze over the next three years.

Brewing and distilling industry groups are now calling for tax cuts to prevent increasing costs being passed on to consumers.

From Monday, pints of beer are set to be about 90 cents more expensive.

The price of beer, wine and spirits set to go up from Monday.

“The increase on Monday means that you will pay $20 in excise on a slab of beer,” Brewers Association of Australia CEO John Preston said.

“About half the price of a $55 slab will be tax. We’ve now got the third highest tax on beer in the world, behind Norway and Finland.”

Taxes on spirits are even higher, with Bundaberg Distillers now leading a co-ordinated campaign calling for the Albanese government to freeze “unbearable” increases on the alcohol excise for two years.

The campaign, set to target Labor in marginal seats, argues that 63 per cent of the cost of a 1 litre bottle of Bundaberg Rum is tax.

While beer attracts less tax than spirits, the Australian Hotels Association said Monday’s increase would impose higher costs on publicans when they can least afford it.

“The tax collected on beer on a small country pub selling 15 kegs is over $1,

100 per week,” AHA CEO Stephen Ferguson said.

Finance Minister Katy Gallagher on Thursday downplayed concerns about the increase, but suggested the government may look at changing excise rates in the next budget.

“In relation to the indexation arrangements that are around alcohol, this is something that happens,” she said.

“This happens … as normal kind of course of business for governments of both persuasions.”

“We look at these matters every budget, we look at what’s possible, what’s affordable,” she said.

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