‘$15 pint’: greatest tax hike in 30 years paints sobering future for Australia’s beer drinkers

‘ pint’: greatest tax hike in 30 years paints sobering future for Australia’s beer drinkers

Pour one out for Australia’s beer drinkers as the value of a pint on the pub surges as much as $15 (£8.60/US$10.50) following the biggest tax hike in additional than three many years.The Australian Tax Workplace introduced the excise on beer could be lifted by 4%, or $2.50 extra a litre on Monday below its CPI indexation overview.The Brewers Affiliation of Australia stated it was the most important improve in additional than 30 years to hit a market that was already taxed greater than “nearly every other nation”.“We now have seen nearly 20 will increase in Australia’s beer tax over the previous decade alone,” CEO John Preston stated.“Sadly, we’re now seeing the affect as pub patrons will quickly be confronted with the prospect of often paying round $15 for a pint at their native.“For a small pub, membership or different venue the newest tax hike will imply a rise of greater than $2,700 a yr of their tax invoice – at a time when they’re nonetheless struggling to take care of the continued impacts of the pandemic.”Australia’s excise on beer is adjusted twice a yr based on inflation, which is rising at its quickest tempo in additional than 20 years with a peak not anticipated till the tip of the yr. Wine operates below a separate taxation system.A report by economist and College of Adelaide professor Kym Anderson AC, commissioned by the Brewers Affiliation in 2020, discovered Australians paid the fourth-highest beer tax on the planet in contrast with superior OECD and EU international locations. Solely Norway, Japan and Finland paid extra.The following highest-taxing international locations had been the UK and Eire, however their charges had been nonetheless about 30% decrease than Australia’s between 2018 and 2020.At $2.26 a litre of alcohol, Australians paid a whopping 18 instances greater than Germany, 15 instances greater than Spain, seven instances greater than the US and 6 instances greater than Canada. It additionally paid almost double its neighbour in New Zealand.In 2020-2021, the federal government acquired $2.5bn in excise and customs responsibility on beer, together with draught and packaged drinks. The beer tax accounted for about 42% of the retail value of a carton of beer.On the similar time, Australians have been named the heaviest drinkers on the planet – spending extra time drunk than every other nation in 2020. And beer is a well-liked drop.In response to the newest ABS figures, beer accounted for 39% of the 191.2m litres of pure alcohol accessible for consumption round Australia in 2017-2018.Preston stated brewers and operators had been “extraordinarily upset” the previous authorities didn’t scale back the beer tax within the March funds as was proposed, and referred to as for beer tax reduction prior to a different increase in February 2023.

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