The campaign for relief on beer excise – for pubs and patrons – continues its push on government, highlighting the multiple taxes paid to simply enjoy a glass of beer.
An initiative against beer becoming ‘liquid gold’ began last week, fronted by the National AHA, with Clubs Australia and the Brewers Association.
Beer excise has increased in Australia every six months for 35 years, making it now the fourth-highest beer tax in the world.
AHA CEO Stephen Ferguson points out that a person ordering a beer has had to pay tax three times before they have their first sip, also paying duty on their income and again with GST – which was once billed as the tax to end all the behind-the-scenes taxes, such as excise.
“GST was supposed to eliminate all these other taxes, but it certainly didn’t eliminate excise.”
The government currently collects around $7 billion annually in alcohol excise, with draught beer contributing about $300 million, representing a disproportionate effect on licensed venues.
The initiative aims to halve the excise, reducing it from $70 to $35 per keg. It’s estimated the $150 million reduction in government tax collection would be quickly returned through increased sales, business and employment.
The Hotels Association is hoping in time to see government policy apply no or limited excise on beverages poured into a glass in a licensed premise, on the basis the labour creates employment.
“We believe there should not be a tax on jobs and that they should be treated differently to packaged or bottled products sold in bottleshops, simply because of the labour used to pour it and the sociability of venues,” says Ferguson.
In the wake of a crippling two years, the AHA suggests people should be encouraged to safely socialise, not be taxed on simple pleasures.
“It’s nothing but a tax on socialising and has to stop before beer really does become liquid gold.”
The campaign will continue over the coming weeks, now targeting marginal areas in Queensland and NSW.
On Friday (11 February) the third Sydney CBD Summit took place, hosted by NSW Premier Dominic Perrottet, joined by many members of the NSW Cabinet, to workshop ideas to revitalise the city in the wake of COVID.
AHA NSW CEO John Whelan took part, representing the hotel industry, raising ideas focussed on revitalising the CBD, removing unnecessary restrictions and increasing visitation to support struggling hospitality businesses.
Whelan commended the conference, and welcomed moves by government to cut red tape and allow venues to utilise more of their space, including private carparks, for al fresco dining.
But he also said more needs to be done to immediately ease pressure on businesses.
“Our CBD venues are still subject to COVID restrictions, mandatory QR scan-ins and are suffering because Sydney is yet to see the return of office workers, international tourists and cruise ships,” he told the summit.
“There is clearly lots to be done to support all NSW hotels and it is pleasing to see Premier Perrottet so focussed on the revitalisation of the hospitality industry.”
