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Beer price hike set for August

  • June 10 2020
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Invest

Beer price hike set for August

By Cameron Micallef
June 10 2020

The price of beer is set to get more expensive, with the industry body taking aim at a scheduled tax increase in August.

Beer price hike

Beer price hike set for August

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  • June 10 2020
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The price of beer is set to get more expensive, with the industry body taking aim at a scheduled tax increase in August.

Beer price hike

The price of beer increases in line with the consumer price index every six months since August 1983, with almost half the cost of beer now being paid in taxes.

Brewers Association of Australia CEO Brett Heffernan explained that more Australians are counting their pennies, with the price increase hurting people already impacted by COVID-19.

“The price of a beer in Australia is already over the top. Tax accounts for 42 per cent of the price of a stubby. On a typical $52.00 carton, $22.05 goes to the taxman,” he said.

The Australian government taxed the beer industry $3.6 billion last year, which Mr Heffernan highlighted puts the tax rate as the fourth highest in the industrialised world, with only Finland, Japan and Norway paying more tax.

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“Putting up the tax in August would be another hit to pubs, clubs and the hundreds of thousands of Australians they need to re-employ once they can reopen in full. Higher taxes will only make that challenge harder when so many are on their knees,” Mr Heffernan said.

The latest beer tax increase in February was 1.2 per cent, with Mr Heffernan stating just because there have been 71 rises, does not mean there needs to be 72.

“We’re not asking for a tax cut at this time... just don’t increase the tax. That would spare punters further pain, take pressure off hospitality venues and, because it’s revenue neutral, won’t cost Treasury a cent,” Mr Heffernan concluded.


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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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