Treasurer Jim Chalmers says drinkers should not be ‘ripped off’ when beer excise increases in February

Treasurer Jim Chalmers has warned pubs not to dupe Aussie beer drinkers over the incoming tax increase, which he says amounts less than a cent per schooner or pint.

EXCLUSIVE

Pubs, clubs and bottleshops are being warned not rip off the nation’s beer drinkers, with Treasurer Jim Chalmers revealing next week’s tax increase equals less than one cent per pint.

Mr Chalmers has launched a pre-emptive strike on alcohol retailers amid concerns they would use Monday’s biannual indexation of the beer excise to hike up prices higher than necessary to cover the tax increase.

Treasurer Jim Chalmers has come to the defence of beer drinkers over the looming excise increase. Picture: NewsWire / Nadir Kinani

“The extra excise on a schooner next week is less than one cent and don’t believe anyone who tries to tell you otherwise,” he said.

“Drinkers are doing it tough enough without being ripped off or lied to.”

Australian bars and brewers have been calling for the alcohol excise to be frozen or even slashed as the county currently pays among the highest taxes for booze in the world.

But it can be revealed the Treasurer has written to the Australian Consumer and Competition Commission (ACCC) requesting the watchdog monitor alcohol sellers in February to ensure they “do not take undue advantage” of the regular indexation of the excise to “mislead” customers about the price impact.

A schooner or pint of beer should only go up by one cent when the excise increases in February.

In the letter to ACCC chair Gina Cass-Gottleib, seen by News Corp, Mr Chalmers took aim at the push from lobby groups against the indexation of the beer excise, arguing the changes were expected to have “limited impact” on prices.

“A pint of full-strength beer will have additional excise of less than one cent,” Mr Chalmers wrote.

“Including the most recent indexation in August 2024, the additional excise is expected to have been a little over two cents.”

Mr Chalmers said the impact of the excise hike on a schooner and a bottle of full-strength beer was also less than one cent.

A 24 pack of mid-strength beer would have an additional excise of about five cents, and including the most recent indexation in August the total price impact was about 30 cents.

“When alcohol excise is indexed in the usual way in February, I expect that the ACCC will monitor the statements of retailers and wholesalers to ensure that they do not mislead Australian consumers about the rationale for any price rises,” Mr Chalmers said in the letter.

The government’s mid-year budget update in December included an extra $30.4 million in funding to the ACCC to increase investigation and enforcement activity on harmful or misleading conduct in the supermarket and retail sectors.

Distillers and brewers have gone to war with the Albanese government over taxes on booze, with the excise on beer due to pour $11.5 billion into government coffers over the forward estimates.

This is in addition to the excise on spirits forecast to deliver $14bn to the budget over four years.

Originally published as Treasurer Jim Chalmers says drinkers should not be ‘ripped off’ when beer excise increases in February