The Federal Government’s budget has brought good news for beer drinkers and brewers. Jim Chalmers has frozen the indexation of draught beer over the next two years. It is something the hospitality industry has been calling on for some time.
The Brewers Association of Australia is not only happy with the announcement, but that it is coming into effect soon.
“Australia’s brewers and beer drinkers welcome the Government’s announcement to freeze the indexation on draught beer for 2 years,” a spokesperson for the association said.
“Importantly, the measure takes effect from August this year, helping Australia’s brewing and hospitality sectors at a time when it’s acutely needed.
“After more than 40 years of these twice-yearly tax increases, which has given Australians the third highest taxed beer in the world, we welcome the Prime Minister’s decision to step in. Whilst this is a moderate change it will certainly make a difference for brewers and everyone who enjoys visiting their local for a beer. We also welcome the Coalition’s decision to match this commitment.”
Prior to the announcement of the budget, the association had been calling for a reduction in tax on draught beer in pubs and clubs.
“A significant cut in the beer tax bill for pub and club owners and their customers will help the hospitality sector as they cope with the ongoing impact of mandatory closures due to lockdowns and other restrictions such as capacity limits,” association CEO John Preston said at the time.
“A 50 per cent reduction in the excise rate on draught beer would deliver a massive boost to hospitality business owners at a relatively small cost to the Government. This beverage anchors pubs and clubs, and these businesses need a break.”
Preston pointed out that this tax in Australia is the fourth highest in the developed world. He said that given more than 85 per cent of beer consumed in Australia is made in Australia reducing the tax should also be a priority to support the 100,000 jobs that rely on brewing and the hundreds of millions of dollars of produce we source from Australian farmers.”
The Brewers Association also supports the call from the Independent Brewers Association in their submission to increase the brewers’ rebate from $100,000 to $350,000 per annum.