Budget a let down to pubs, patrons & brewers

The Australia Hotels Association and Brewers Association have expressed disappointment that their calls for a cut in beer excise were ignored by the Federal Government following last night's budget announcement.

It says the move to cut the tax on draught beer by 50 per cent was supported by more than 20 backbenchers and the Brewers Association says that it will continue to campaign for a draught beer tax cut and will be seeking a commitment from both the Coalition and Labor at the upcoming Federal Election.

“Australia has the 4th highest beer tax rate in the world and in refusing to address this the Government has ignored calls from pubs, clubs and Australia’s 11 million beer drinkers. The Government has endorsed its continued twice yearly beer tax increases which will mean that next year Australians will be paying the third highest beer taxes in the world," said Brewers Association CEO, John Preston.

“This is not sustainable for pubs and clubs. It’s also not fair for everyone who enjoys the great Australian pastime of a having a beer with their friends at their local. Ninety-nine per cent of draught beer consumed in Australia is brewed here. The Australian beer industry supports over 100,000 jobs through its supply chain - from barley and hops production, great manufacturing jobs, and people employed in pubs and clubs throughout Australia."

AHA National CEO Stephen Ferguson said the Association’s 5000 members, 250,000 workers and millions of patrons would feel let down. 

“The way we are going draught beer poured at a pub is becoming a luxury item,” Mr Ferguson said.  

“It’s safe to say our members, staff and patrons feel let down. A hidden beer tax doesn’t pass the pub test and it was great so many backbenchers agreed with us,” he said.

“A cut to this hidden twice-yearly tax would shave about 30c off the cost of a schooner – that might not mean much to a politician, but it means a hell of a lot to many people in the front bar struggling to make ends meet.

“Pubs have been doing it tough for two years now – in some states many venues have had just six weeks of normal trade without density restrictions due to COVID. Our request to the Government would’ve sent a small price signal to the electorate that after a tough two years it was time to encourage people to come back to the pub and have a drink with friends, rather than drink alone at home."

Mr Ferguson said publicans were also disappointed there had been no changes to the Fringe Benefit Tax (FBT), which he said was unfair and favoured large-scale sophisticated employers or “the big end of town.”

“Exempting FBT on meals and accommodation would level the playing field and provide a much-needed stimulus creating instant jobs and an economic boost to a sector hard hit by the pandemic,” he said.