‘Shocking to see’: $15 pints to become new normal

You hate to hear it, but the industry is warning that $15 dollar pints will become the new normal – claiming a despised tax is to blame.

Beer lovers will face another cost-of-living blow next month when the tax on alcohol increases once again, meaning a pint could cost more than $15.

The industry is putting renewed pressure on the federal government to freeze the excise and implement urgent reforms to ensure the viability of local manufacturing.

The beer tax will increase to over $60 per litre of pure alcohol due to the February 1 indexation.

Beer tax is increasing once again, with a pint costing over $15 due to the February 1 indexation.

Brewers Association of Australia CEO John Preston told Herald Sun the latest price increase would have a negative impact on both brewers and beer drinkers.

“In many venues, people are paying over $15 for a pint. This is a huge amount considering how tight the family budget is,” Mr Preston said.

The excise on a pint will increase to about 90 cents, and the tax on a $55 carton of beer will exceed $20 plus GST.

The tax on a keg of beer increased by approximately $2 to $78 in August.

The industry is calling for urgent reforms to ensure the viability of local manufacturing. Picture: NCA NewsWire / Paul Jeffers

The cult favourite Sydney craft brewery Wayward Brewing went into administration with $2 million of debt, citing taxes as a reason for its downfall.

Its founder expressed concern that more small breweries could also face financial troubles.

Peter Philip founded the Wayward brand in 2012.

He stated that smaller independent brewers are experiencing a “perfect storm,” and that consumer support is insufficient.

He said input costs had gone up 25 to 30 per cent in the past two years, with transport up 50 per cent and electricity up 70 per cent.

Small breweries, like Wayward, which recently went into administration, are facing financial troubles due to high taxes and rising input costs.

His administrator, Atle Crowe-Maxwell from DBA Reconstruction & Advisory, said independent brewers were being “smashed” by the tax.

“This whole industry has just been smashed by excise,” he said of the government tax, which accounts for up to a third of the cost of beer.

A number of craft brewers went bankrupt in 2023, and Mr Philip, the former chairman of the independent Brewers Association, warned that Wayward wouldn’t be the last to fall.

In an upcoming interview with news.com.au, fellow independent Sydney brewer Stef Constantoulas, co-founder of Sydney’s Philter Brewing, said the tax was one of myriad market forces smaller brewers are forced to contend with.

Philter Brewing co-founder Stef Constantoulas said the excise is one of many imposing market forces brewers are forced to deal with.

“The number of friends of ours, unfortunately, hitting the administration button or losing their businesses is pretty shocking to see,” he told news.com.au.

“We are in an industry where we are a premium on a premium.”

The tax has been widely criticised for contradicting the Federal Government’s $225m tax relief for small breweries and distillers as part of the 2021-22 federal budget.

“All these things just affect the price on the shelf, and then with things like excise going up six monthly, it’s very hard for us to hold price,” Mr Constantoulas explained.

“It’s also very hard for a consumer to understand why their beer is getting more expensive.”

You can read more from the exclusive chat with Mr Constantoulas on the state of craft beer in Australia this weekend.