Regional Victorian pubs call for beer tax holiday due to coronavirus slowdown

Every February and August, pubs and other watering holes have been required to increase tax on beer in line with the consumer price index — a policy introduced 37 years ago.

NEWS: Beer Tax Clunes National Hotel Pictured: L-R Jen and John Hind. PICTURE: ZOE PHILLIPS

ONE of Australia’s great amber ale aficionados — Bob Hawke — also, ironically, gave the nation’s publicans one of their least favourite days of the year.

Every February and August, pubs and other watering holes have been required to increase tax on beer in line with the consumer price index — a policy introduced by the Hawke Government in 1983.

The latest price rise — and the first since the coronavirus-induced economic downturn — is set to hit on August 3.

While the exact cost on a pot, pint or schooner is yet to be determined, publicans are calling on Federal Treasurer Josh Frydenberg to freeze the tax, reflecting similar moves by governments abroad.

Like many businesses, National Hotel Clunes publicans Jen and John Hind are keen for all governments to ease the tax burden during the economic downturn.

Mrs Hind said while community support had been strong, the fluid nature of coronavirus restrictions had a toll on business.

“When the full restrictions were in, we were doing takeaway and opening fewer days, so business was down by about 70 per cent,” she said.

“Lion (brewery) have been good, they put a freeze on prices and we’re waiting to see what CUB (Carlton and United Breweries) do. If the government can also do something on the tax side of things, it all helps to keep country pubs open.”

At the last tax rise in February, the federal beer tax jumped to $2.26 per litre.

In a carton of 4.9 per cent beer that retails for $52, more than a third— $22.05— is tax.

Brewers Association of Australia chief executive Brett Heffernan said the price rise equated to only a few cents per beer but added up for publicans across the country.

He said Australians already pay the fourth highest beer tax in the industrialised world.

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