Aussie beer drinks to be slugged with biggest tax increase in three decades

Aussie beer drinkers have been warned they may soon be forking at out $15 for a pint at their local, with the nation’s beer tax on the rise again.

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 mounting on the Albanese government to slash the excise on draught beer in its October budget as Aussies cope with the rising cost of living.

Brewers Association of Australia chief executive John Preston said today’s ­biannual indexation had ­resulted in the tax rising 4 per cent, “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 effect as pub patrons will soon be faced with the prospect of regularly paying around $15 for a pint at their local.”

The beer tax will rise from $53.59 to $55.73 per litre of ­alcohol.

Mr Preston said this meant the tax on a carton would rise about 80c, to $18.80.

The tax on a keg will jump about $4, raising the cost to almost $74, and rise from 80c to 84c on a pint.

Beer drinks Sophia Bazalicki and Bailey Pilgrim both agreed an increase to the beer tax was “not good”. Picture: Tony Gough

He acknowledged this was a “problem” that Treasurer Jim Chalmers had inherited, and there were many demands on the federal budget.

“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 Dr Chalmers, who has also rejected calls to extend the temporary cut to the fuel excise, offered no 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,” Dr Chalmers said.

The tax on tap beer was to be cut by 50 per cent in the Morrison government’s March budget, at a cost of $190m this financial year.

But speculation about the cut sparked criticism that it would benefit men, and have detrimental health effects.

Australian Hotels Association chief executive Stephen Ferguson said: “We were very disappointed that it was put in the budget then taken out.”

Mr Ferguson said a country pub using 10 to 15 kegs a week now faced an increase of $2000 to $3000 this year.

Pubs had previously tried to bear the increases but would have to pass the cost on amid rising food, energy and workforce pressures.

“It makes it increasingly more difficult for people to spend money in pubs, clubs, cafes and restaurants,” Mr Ferguson said.

The cost of a keg will jump from around $70 to almost $74. Picture: David Crosling

Geelong university student Sophia Bazalicki, 21, and retail worker Bailey Pilgrim, 23, enjoyed a pint of Great Northern beer for $12.50 each at Taxi Kitchen in Federation Square on Sunday.

Ms Bazalicki said the ­increase in the tax was “not good” and only added to the cost of living. “It is all just ­piling on,” she said.

Mr Pilgrim, who said beer was his drink of choice, said the increase would not affect him as much because he was an infrequent drinker.

Asked if they would choose a different alcoholic drink if the price of beer got too high, the pair said: “Probably”.

“I would be more inclined to go for a spirit,” Ms Bazalicki said.