Brewers Association of Australia: ‘It was difficult to get people back in the doors after Covid and now it’s so expensive to buy a round’

Pubs are warning they will have to pass on the latest increase to customers. This is how much tax you’ll pay on a pint.

Drinkers will pay almost $25 tax on a carton of beer, thanks to a 2.2 per cent increase, effective from Tuesday.

Pubs are warning the latest increase will be passed on to drinkers, sparking fears it will drive customers away as inflation forces Aussies to cut back.

The federal government is coming under pressure to freeze the excise on beer following the latest rise – the second this year.

Distillers also say a “punishing tax” on spirits, which has soared beyond $100 per litre of alcohol, will make business even harder.

There are calls to freeze the excise on beer. Picture: Damian Shaw

Brewers Association of Australia chief executive John Preston said the latest ­biannual indexation meant there had been a 10 per cent increase in the beer tax since 2022.

Mr Preston said the tax increases were “out of control”.

“While the Treasurer inherited these automatic half-yearly beer tax increases, we’re calling on the government to step in and take some action before a trip to the pub or a dinner out with the family becomes an unaffordable luxury for most Australians,” he said.

The beer tax will rise from $57.79 to $59.06 per litre of pure alcohol.

The tax increases have been criticised as ‘out of control’.

Mr Preston said this meant the tax on a $55 carton of beer would rise about 40c to $19.93.

And with $5 of GST on top, it meant almost half of the cost, or $25, was taxes alone.

The 2.2 per cent increase to the excise is lower than the previous two 4 per cent rises as inflation has started to fall.

Australia overtook Japan, which is cutting its excise, as the third-highest beer-taxing country after the February tax increase.

But Mr Preston said Australia was fast approaching Finland, which has the second-highest taxes.

Norway has the highest taxes but both countries have state-owned monopolies on alcohol.

He said he did not believe the increase was actually raising any more money for the government because beer consumption had been falling.

He said people were now paying almost $4 in tax when buying a round of four full-strength pints.

“They are just hurting beer drinkers and our pubs and clubs,” Mr Preston said.

“It was difficult to get people back in the doors after Covid and now its so expensive to buy a round.”

The tax on a keg will increase about $2 to $78 and from 87 cents to 89 cents on a pint.

Australian Hotels Association chief executive Stephen Ferguson said costs rising for everyone, including businesses, across the country.

“The tax on beer increases each six months and hotels have no choice to pass the cost on to their patrons,” he said.

“A freeze on excise would be welcomed by everyone.”

Originally published as Brewers Association of Australia: ‘It was difficult to get people back in the doors after Covid and now it’s so expensive to buy a round’