Australia: Largest breweries push for excise tax cut

Australians could soon be enjoying cheaper beer, as Australia's largest breweries push the government to cut excise tax to reduce prices and provide a lifeline to struggling pubs and clubs, the Daily Mail reported on September 29.

Coopers, Lion and Carlton & United Breweries combined to make the call, saying booze must be made more affordable to entice badly-needed customers back to bars after many months of heavily reduced trade due to coronavirus lockdowns.

The breweries estimate 85 per cent of the country's beer stock is made in Australia.

Currently breweries are taxed A$2.23 per litre of alcohol at the manufacturing point, which is passed on to consumers.

Peter Filipovic, chair of Brewers Association of Australia, said a cut would help breweries' biggest customer - the hospitality industry.

'We need to make a beer at the pub more affordable. It is as simple as that,' Mr Filipovic said.

'The tax on beer has gone up twice annually for the past 35 years forcing Australians to pay the fourth highest beer tax in the industrialised world.

'This has meant beer, the drink that brings people together, is less and less affordable for everyday Australians. It's not unusual for a single pint to cost A$10 or more nowadays, whereas in the 1970s, a beer would set you back less than a dollar.'

He said Australian beer drinkers need some respite from price rises - with consumption of the amber liquid sliding to a 50-year low pre-COVID-19, due chiefly to cost.

"As we recover from COVID-19 Australians will want to return to their favourite local, however, there is a risk that COVID-19 will have caused permanent behaviour change meaning there is a reticence to gather in pubs and clubs,' he said.

'By cutting excise the Government has an opportunity to incentivise Australians to get out and about and support our vibrant, world leading hospitality industry.'

The loss from pubs and clubs being closed has not been made up for in liquor store sales.

Breweries are also pushing for a domestic tourism package and a continuation of JobKeeper.