Aussie brewers call for beer tax rate reduction

The freezing of the British beer tax at AU$1.52 per litre has drawn complaint from the Brewers Association of Australia, as Australians pay a beer tax of $2.26 per litre. The British beer tax reflects the “handbrake” on Australia’s hospitality and tourism sectors and the local jobs they support.

“We’d take $1.52 any day. Only a cut to our beer tax regime will correct the injustice of Aussies paying many times more than almost all other countries, while, at the same time, giving local businesses the boost they need now. It’s time our politicians recognised Australia’s $2.26 beer tax, the fourth highest in the industrialised world, is grossly over the top and brought it into line with comparable countries. A cut would be fair and aid economic repair,” said Brett Heffernan, CEO of Brewers Association of Australia.

The Brewers Association of Australia argues that the Australian beer tax places a strain on hospitality and tourism operators. In December 2017, America halved its beer tax, with the current US beer tax rate at AU$0.31. Conversely, the Australian beer tax rate was recently increased to $2.26, and is predicted to rise again in August 2020.

The Australian beer tax is 17 times higher than that of Germany ($0.13), 15 times higher than Spain ($0.15), seven times higher than the US ($0.13), six times higher than Canada ($0.35) and approaching double that of New Zealand ($1.26).

“Freezing the beer tax may be popular in the UK, but a freeze would do nothing to take pressure off Aussies. No-one would thank a government for locking in such extreme beer tax rates. Cutting beer tax rates will give Aussies the fair go and relief they deserve, while providing timely and much-needed stimulus to small, medium and large businesses, especially in hard-hit hospitality and tourism,” Heffernan said.

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