Beer tax on the rise, biggest increase in 30 years to be passed on to pubs

Beer lovers are facing the possibility of paying $15 for a pint at their local, as the tax on beer bites.

Australia’s tax on beer is on the rise again, with the biggest increase in more than three decades set to be passed on to pubs and beer lovers.

Pressure is already mounting on the Albanese government to slash the excise on draught beer in its October budget as Aussies face a cost of living crunch.

Brewers Association of Australia chief executive John Preston says today’s biannual indexation has resulted in the tax rising 4 per cent, or “the biggest increase in over 30 years”.

“Australians are taxed on beer more than almost any other nation,” Mr Preston said.

“Sadly, we’re now seeing the impact as pub patrons will soon be faced with the prospect of paying about $15 for a pint at their local.”

The tax will rise from $53.59 per litre of alcohol to $55.73, with a keg to jump by $4 and a carton by about 80c.

Mr Preston acknowledged Treasurer Jim Chalmers had inherited the “problem”.

“Nonetheless, we believe there is a strong case for beer tax relief to be provided by the new federal government – with the hidden beer tax to go up again in February 2023,” Mr Preston said.

But Mr Chalmers did not offer any promises. “We listen respectfully to ideas put to us, but having inherited a trillion dollars in debt, and with lots of other pressures on the budget, it’s not possible to fund every one of them,” Mr Chalmers said.

Richard Bell with dog Onslow at Brightstar Brewery in Thebarton. Picture: Tom Huntley

Thebarton’s Brightstar Brewing is feeling the pinch amid surging wage and supply costs, but owner Gareth Parker will not pass on the tax to customers.

“We’re just going to have to wear it,” Mr Parker said.

“I’m not going to put the price on the consumers. We’re just going to have to ride through it.”