Beer tax to hit pubs when they’re down
AMID the push to support local hospitality businesses to recover from the coronavirus pandemic, publicans and consumers are facing the biggest beer tax in history.
From August 3, pubs and their patrons across the region are set to pay more tax to have a beer, despite calls to freeze the rate because of the COVID-19 pandemic.
Waurn Ponds Hotel manager Margaret Spence said the nation-wide increase would be “devastating” if it goes ahead.
“It’s the last thing we need right now,” Ms Spence said.
“Every time you get an increase it affects sales as you’re forced to put prices up.”
Ms Spence said business had been slow since it reopened in June, with COVID-19 restrictions limiting 20 patrons to an area.
“It’s been pretty hard on the staff, constantly counting numbers and recording names. Having to abide by all the rules, it’s very stressful,” she said.
“The whole hospitality industry is trying to recover — I don’t think this (tax) should be increased.”
The hospitality industry is calling on the Federal Government to freeze the 37-year-old beer tax.
Brewers Association of Australia CEO Brett Heffernan said a tax hike would be another blow to pubs as they strive to reopen and re-employ staff in the wake of COVID-19.
“As the hospitality industry battles with the devastating economic impacts of COVID-19, this latest increase in tax comes at a time when publicans and patrons can least afford it,” he said.
“We appreciate politicians of every persuasion are urging people to get down to their local for a beer to support local jobs. However, the taxman will be there, from August 3, imposing the biggest beer tax ever.”
Beer tax in Australia has automatically increased, by the Consumer Price Index, every six months since August 1983, according to the Brewers’ Association.
Australia’s current beer tax sits at $2.26 per litre, making it the fourth-highest beer tax in the world. In contrast, Germany has lowered its beer tax to zero in response to the pandemic, while the UK froze its tax at $1.52 per litre.