AUSTRALIA | The freeze on draught beer excise has caused fury within the Australian spirits and distilling industry, with many blaming the Government.
The Albanese Government’s freeze on draught beer excise has discriminated against spirits producers, drinkers and the entire distilling supply chain, leaders of the Australian spirits industry said.
Spirits & Cocktails Australia chief executive Greg Holland said there was no policy rationale to support a freeze on draught beer alone.
“The tax on spirits is already three times higher than it is on beer. Freezing draught beer excise alone is discriminatory in every sense – it favours beer drinkers over spirit drinkers, brewers over distillers, and pubs over bars,” he said.
Holland added the Government has effectively ignored the spirits industry’s calls for sensible alcohol tax reform.
“These recommendations were supported by a bipartisan parliamentary committee in its recent report on the food and beverage manufacturing inquiry,” he added.
“Yet the Government has baulked at the alcohol tax reform it knows is desperately needed by the 700 distilleries operating across Australia, 50 percent of them in regional areas.”
Australian Distillers Association chief executive Paul McLeay said the Albanese Government’s favouritism of the beer sector was disappointing.
“This policy has put a dampener on last week’s announcement of a AUD 50,000 increase to the remission,” said McLeay.
“We’ve spent the past year advocating for the industry’s opportunities for growth, including our potential to become a AUD 1 billion export industry within the decade. The Government has so far overlooked this economic opportunity, so we hope there are further policy announcements that will enable us to realise this potential.”
This has followed reports last year concerning the cost of beer at the pub. Punters were outraged to find that two pints of beer could cost nearly AUD 40.
According to the Consumer Price Index, the average cost of alcohol rose by 6.6 percent between August 2023 and August 2024. In February 2024, it was reported that the average price for a pint of beer in Australia was AUD $15.
A beer tax hit customers in early August, which meant a 2.2 percent in just six months. The beer tax has now gone up by more than 10 percent since the last Australian federal election.
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