‘Unaffordable luxury’: Price of beer to rise

The rising cost of living means Aussies will soon be paying more for a pint of beer – as well as other alcohol – after a price rise hits on February 5.

The cost of a pint of beer is set to tip over $15 after a price rise of around 90 cents per pint hits drinkers on February 5.

The latest cost of living blow is due to an increase in the tax on alcohol, which is going up by two per cent.

Brewers Association of Australia chief executive John Preston told news.com.au that Australia has the third highest beer tax in the world, after only Norway and Finland.

“The increase brings the tax on a slab to around $20, with GST added on top of that,” he said.

“These days around half the cost of a $55 slab is excise tax and GST.”

John Preston, CEO of the Australian Brewers Association.

The tax charged on spirits and beer – known as the excise tax – varies depending on the alcohol content of each drink.

The amount of excise tax charged by the government is also linked to inflation, with official figures yesterday showing inflation increased by 4.1 per cent for the three months to December 31.

Excise tax rates are adjusted twice a year – in August and February – based on the movement of inflation.

With inflation on the march in recent times, it means drinkers have been slugged with excise tax increases of almost 15 per cent since the last federal election in May 2022.

Tax on a slab of beer is now over $20. Picture: Sarah Matray

The alcohol industry is calling on the government to reform the excise tax.

“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,” Mr Porter said.

Australian Hotels Association chief executive Stephen Ferguson told the Herald-Sun: “When increases to the cost of living are impacting so many Australians, the government should consider freezing excise for the next couple of years.”