HOPE OF CHEAPER BEER FALLS FLAT
IT seems the froth and bubbles surrounding the prospect of cheaper craft beer after Federal Treasurer Scott Morrison’s pre Budget announcement have gone as flat as a hot beer in the sun.
Mr Morrison announced that all beer sold in smaller kegs would be taxed in the same way as kegs larger than 48 litres. They had previously been taxed 40 per cent more.
At the time, the Treasurer said: “This raises a very tantalising prospect for Australians: the likelihood of cheaper craft beer.”
However craft brewers on the Gold Coast and Tweed say it won’t make any difference price wise.
Black Hops Brewing cofounder Michael McGovern said that there were very few craft brewers who used 30 litre kegs and while the tax on them would be cheaper, it wouldn’t be practical or cost effective to change. “The bottom line is that the tax relief won’t have significant impact on the cost price to craft beer drinkers,” Mr McGovern said.
Mr McGovern said the increase in the amount brewers are able to claim in annual excise tax rebate from $30,000 to $100,000 was also welcome, but the benefits would not be seen in lower prices.
Tweed Heads Pickle Pig Brewery owner Paul Brewer said the Federal Government changes would have little to no effect on his operations.
“I have 120 of the 50 litre kegs so it doesn’t impact on my cost price for my beer,” Mr Brewer said.
“I couldn’t afford to change over to the smaller kegs but it might be something to consider down the track.”