The drinks industry is calling for a 12-month alcohol tax freeze to help businesses recover from COVID-19.
The Australian Hotels Association and Brewers Association of Australia say this “hidden tax” stands in the way of the hospitality industry’s chances of getting back on its feet, with the next excise increase due in August.
AHA chief executive Stephen Ferguson told the Courier Mail: “Most Australians would not know that 42% of the retail price on a carton of beer is tax and 57% of the retail price on a bottle of whisky or gin is tax. Australians are now paying the fourth-highest liquor taxes in the world.’’
Brewers Association of Australia chief Brett Heffernan told AAP it was the wrong time to put further pressure the sector.
“The last thing people need is for beer tax to go up again in August,” he said.
“If we’re to fire the starter’s gun on the economy we have to dump the excise baggage.”
If the campaign for an alcohol tax freeze is successful, it will be the first time in 37 years that Australians have avoided automatic six-monthly excise increases.
Currently, the price of a typical $52 carton of beer includes $22.05 in tax.
Back in February, when the last increase was introduced, Heffernan said: “It’s getting to the point that having a beer with your mates is beyond the reach of ordinary Australians.”
Finance Minister Mathias Cormann said: “We are in the harvesting phase, during which we look at new and old reform proposals with fresh eyes.”
He would not say if the Government was open to an alcohol tax freeze.
Pictured main: NT Chief Minister Michael Gunner pouring one of the first beers in Australia post-shutdown at The Cav Hotel in Darwin.
