Calls to put a cap on Australia’s beer tax before August hike

Australia’s “over-the-top” beer tax currently accounts for 42 per cent of the price of a stubby — but brewers are calling for a freeze on the next scheduled increase to support punters and publicans.

Now is not the time to be ramping up taxes on consumers, argue brewers across Australia as they approach the new financial year.

Brewers Association of Australia CEO Brett Heffernan said Australia’s “over-the-top” beer tax currently accounted for 42 per cent of the price of a stubby.

“On a typical $52 carton, $22.05 goes to the taxman,” he said.

“When it comes to taxing a drink, Aussies pay the fourth highest beer tax in the industrialised world.”

Independent Brewers Association Tasmania representative Jon Burridge. Picture: ZAK SIMMONDS

He said the last thing punters and publicans needed was for the taxed amount to increase.

Since 1983 the beer tax has automatically increased in line with the Consumer Price Index rate every six months.

Mr Heffernan said the government should put a freeze on the 71 consecutive tax increases on beer to support local pubs, clubs and consumers who were “on their knees”.

“We’re not asking for a tax cut at this time, just don’t increase the tax,” he said.

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Independent Brewers Association Tasmanian representative Jon Burridge said the timing for an excise “couldn’t be worse”.

“If it does go ahead it’ll be up to the brewers whether they absorb that in their pricing or if they pass that onto the publican and in turn the consumer,” he said.

“I’ve seen a lot of politicians recently quote ‘does it pass the pub test?’

“To me, clearly this doesn’t.”

He said the increase would reduce funds for taking on employees, expanding facilities and developing new products.

The beer tax last year raked in $3.6 billion for the Australian Government.