Community
7 February, 2022
Cairns pubs and clubs hit with largest beer tax increase in over a decade
THE Australian Hotels Association (AHA), Clubs Australia and the Brewers Association have joined forces with Cairns pubs and clubs to call for urgent action to cut the draught beer tax that came to place in February 1.
Pubs and clubs received difficult news as the tax on draught beer was increased this week by the highest amount in the past ten years. Australia already has the fourth highest beer tax globally, which has gone up twice a year for the past 35 years.
This week’s increase will take the draught beer rate to $36.98 per litre of alcohol – a 2.1% increase for the six-month period. After two years of the pandemic, Queensland Hotels Association Chief executive Bernie Hogan said this tax was a low blow for pubs and clubs.
“This year - after our members have done the right thing throughout the pandemic and at a time when jobs and businesses hang in the balance – we ask that pubs and drinkers get a break,” Mr Hogan said.
“A tax cut of 50% to the current excise rate would reduce the price of a schooner by about 35 cents, turning the tap on some much-needed relief for beer drinkers and pubs.”
Hemingway’s Brewery CEO Tony Fyfe said the hospitality sector needs support now.
“It’s part of our way of life in Australia that when someone is down, we help them,” Mr Fyfe said.
“Everyone in the hospitality industry did their bit in keeping Australians safe by shutting our doors and working to strict protocols.
“We accept it was in the country’s best interests for us to take one for the team during the pandemic; we’re not asking for a handout, just a decrease on the tax burden.”
Brewers Association of Australia Chief Executive John Preston said the Federal Government had an opportunity to give pubs and clubs a fighting chance in the upcoming Federal Budget.
“We are very concerned that Australian beer drinkers will cop the biggest beer tax increase in more than a decade – it’s not right, and it’s not sustainable,” Mr Preston said.
Mr Preston said 11 million Australians visited a local pub or club at least once every three months, and the industry employed hundreds of thousands of Australians.
“The industry is telling us they want to help out their patrons as well as employ more as they rebuild,” he said. “But the high level of tax is holding them back.”
Executive Director of Clubs Australia Josh Landis said that by giving clubs a tax reduction, they could support other industries.
“A reduction in the beer excise would help clubs get back on their feet again while allowing them to keep supporting their local sporting teams, charities and other worthy community groups,” Mr Landis said.
