Save
Have you noticed beer just got more expensive?
As of this week, it’s now more expensive to buy a beer, no matter where in Australia you might be.
Have you noticed beer just got more expensive?
As of this week, it’s now more expensive to buy a beer, no matter where in Australia you might be.
The twice-yearly indexation of alcohol excise rates has just taken place, and it’s set to increase the price for all beer products available in Australia, thanks to a corresponding increase in the consumer price index (CPI).
For alcoholic beverages, excise rates are expressed per litre of alcohol – calculated by multiplying the actual volume of a product by its alcoholic strength.
According to the Australian Taxation Office, the CPI indexation factor for rates from 3 February is 1.012.
The Brewers Association of Australia has noted that it’s the 71st consecutive hike on beer tax.
The increase means we are now paying the fourth-highest beer tax in the world, according to a report commissioned by the Brewers Association and undertaken by Emeritus Professor Kym Anderson.
In Australian dollar terms, we pay 17 times the tax that our German counterparts do for beer, the association has reported.
We also pay seven times more than we would in the United States for the same amount of beer, and double that of New Zealand.
Brewers Association of Australia CEO Brett Heffernan said, “It’s getting to the point that having a beer with your mates is beyond the reach of ordinary Australians.”
“By far the biggest cost in the price of a typical Australian beer is tax,” he highlighted.
“It’s not the ingredients, production costs, advertising, transport or even retail overheads and profits – it’s Australian government tax.”
Mr Heffernan outlined how “a massive 42 per cent of the retail price on a carton of beer is tax”.
“Of the $52.00 retail price for a typical carton of beer at 4.9 per cent alcohol, $21.84 goes to the taxman.”
“Now it’s going up again,” he continued, stating that “most Aussies simply are not aware they are being hit so hard, or so often, with beer tax”.
Here’s a break down of the changes:
Light beer (alcohol volume not exceeding 3 per cent)
For individual bottles and cans, the tariff to be applied based on the new figures is more than 50 cents higher per litre of alcohol.
This figure will see tariffs jump from $43.53 to $44.05 per litre.
For tap beers connected to either a pressurised gas delivery system or pump delivery system in containers that are between eight and 48 litres, the price will lift by 10 cents per litre of alcohol – from $8.71 to $8.81.
Mid-strength beer (alcohol volume between 3 per cent and 3.5 per cent)
For bottles and cans smaller than eight litres, or eight to 48 litres where they aren’t designed to connect to a pressurised gas delivery system or pump delivery system, prices are now up 61 cents per litre of alcohol, from $50.70 to $51.31.
For tap systems between eight and 48 litres, prices per litre of alcohol have seen a lesser increase, with tariffs now $27.59 from $27.26.
Full-strength beer (alcohol volume exceeding 3.5 per cent)
Full-strength bottles and cans for personal consumption will be slapped with a tariff hike comparable with mid-strength beer.
This will see taxes of $51.31 per litre of alcohol applicable to such sales.
On tap, tariffs will jump from $35.71 to $36.14 per litre of alcohol for full-strength beer varieties.
But what about spirits?
They are also subject to the tariff changes.
Buying excisable beverages with an alcohol volume content that is higher than 10 per cent will now see consumers slugged an extra $1.03 per litre of alcohol contained in the end product.
About the author
About the author
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
