A pint at the pub could get a little pricier from Monday, with an increase to Australia’s alcohol excise kicking in, amid calls to freeze the regular hikes from putting financial strain on hospitality venues.
From Monday, distillers and brewers will be required to pay $104.31 per litre of alcohol to the taxman, with the Federal Government raking in $8 billion annually in beer and spirit taxes.
As Australians enter an election year, Australian Hotels Association WA chief executive Bradley Woods said high cost of living meant the hidden tax increases made it harder for many to afford a social beer or drink.
“Western Australia’s pubs, bars, and taverns are vital social and economic hubs, but are unfairly impacted by an outdated tax system that are driving up costs for venues and consumers alike,” Mr Woods said.
“The hospitality industry needs relief. That’s why we are calling for a 40 per cent discount and a freeze on excise rates for beer and spirits sold on-premise in licensed venues. This measure would support the industry and ensure Australians can continue to enjoy responsible socialising without excessive costs.
“It’s time to tell your federal election candidates that enough is enough. Australians deserve a fair go, and that means a taxation system that supports rather than punishes social venues.”
The calls were echoed by Spirits & Cocktails Australia chief executive Greg Holland, who said the excise had climbed by 20 per cent on pre-pandemic prices.
“The latest tax increase, which takes Australia’s spirits excise to $104.31 per litre of alcohol, will make it more expensive for consumers, more expensive for producers, and less competitive for spirits exporters,” he told The Australian.
Ahead of the excise rollout, Treasurer Jim Chalmers wrote Australian Competition and Consumer Commission chairwoman Gina Cass-Gottleib instructing the watchdog to monitor prices over the next month.
“We are going in to bat for beer drinkers by making sure they’re not ripped off or lied to about this very small change,” he said.
“We’ve written to the competition watchdog to make sure pubs aren’t doing the wrong thing by their customers by blaming the government for any much bigger increases.
“Most pubs who do the right thing won’t have anything to worry about.”
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