Tradition Aussies can no longer afford

Perth Now

3 hours ago

A two-speed booze tax kicks in Monday, as beer taxes are frozen while spirits are slugged by the twice-a-year price hike.
Anthony Albanese made the two-year beer tax freeze an election promise and has paused any tax increases on kegged beer.
But the freeze creates an unequal playing field between draught and liquor, as cocktail and spirit drinkers will see venues pass on the latest tax hike at the till.
'With cost-of-living pressures biting hard, even the smallest increase in price is noticed by customers and businesses alike,' Night Time Industries Association boss Mick Gibb told NewsWire.
'We're not asking for special treatment, just equal treatment. Freezing the beer excise is a great thing, but we can't leave behind the small bars, live music venues and performance spaces that aren't running beer taps.
'While there's lots of factors involved in pricing a cocktail or a drink, if there's a cost input that the government has control over, they should be leveraging it to give people a bit of breathing room.' Tax increases on draught beer have been paused for two years. Glenn Campbell / NewsWire Credit: News Corp Australia
Substantive, quarterly inflation data released this week shows inflation has flattened out to 2.1 per cent over the past year.
Despite this reprieve for household budgets, the majority of average workers cannot afford a quick drink after work, the Night Time Industries Association finds.
The association's latest quarterly report found people on salaries between $80,000 to $150,000 were staying in, while people being paid more than $150,000 were going out more and more.
'Cost-of-living pressures are far from over, with many venues reporting consumers are foregoing the after-work drink for less frequent, but more extravagant experiences for special occasions at a premium restaurant or an international artists' gig,' Mr Gibb said.
The Australian Distillers Association says distillers and venues cannot cop the price hike.
'This is incredibly disappointing. It's not just another tax hike, it's a significant one that
distillers and hospitality venues simply can't absorb,' distillers boss Cameron Mackenzie told NewsWire.
'In the end, it's customers who'll be left paying more for their favourite spirits'
Half of Australian distilleries were in the regions, he said, and drove manufacturing, jobs and tourism.
'This tax hike hits everyone: producers, venues and consumers who'll see higher prices for their favourite gin and tonic.'
Out campaigning, the Prime Minister poured plenty of beers, but the tax freeze was announced weeks before the election date was officially called. The Labor government has enacted the beer tax freeze, promised by Anthony Albanese before the campaign period earlier this year. Mark Stewart / NewsWire Credit: News Corp Australia
At that time, Treasurer Jim Chalmers called the tax break modest. News.com.au reported last week the lost tax revenue would equal $95m over four years.
The Prime Minister's office declined to say how much the tax break would cost the budget.
'We're focused on easing the cost of living for Australians, and we know that every little bit helps. This will help take a bit of pressure off beer drinkers, brewers and bars,' a spokesperson said.
'Whether it's a tax cut for every taxpayer, help with energy bills, or the new relief that's rolling out this month like higher wages for award workers, we're doing everything we responsibly can to help with the cost of living.'
The tax freeze only applies to beers on tap at licensed hospitality venues. Stubbies and cans at the bar or bottle store are excluded. Distilled spirits are totally excluded from the freeze no matter where they are purchased or how they are consumed. From Monday, taxes on spirits with more than 10 per cent alcohol will increase 1.6 per cent.
Alcohol taxes rise in February and August every year. For beer, the rates vary depending on alcohol content, the size and type of container it's packaged in, and whether it was made at a commercial brewery or a 'brew-on-premise' venue.
Kegs of the most common beers at pubs are usually 50 litre. Tax on each 50-litre keg of full strength beer will stay at $43.39 for the next two years. Willie the Boatman brewery has canonised Anthony Albanese with a pale ale. Jason Edwards / NewsWire Credit: News Corp Australia
Wine falls under a separate tax regimen than beer and spirits. Wine is taxed at 29 per cent of the wholesale value.
The beer and spirits excise has ticked up and along without reform for more than 40 years.
The Australian Hotels Association says the decades-old format needs to change.
'We recognise the need for the government to raise revenue from liquor excise but the way excise was going up every six months was keeping people at home, drinking alone rather than getting out and socialising in safe, local venues,' AHA president David Canny told NewsWire.
'We want to make sure a beer poured at the bar doesn't become a luxury item and this is a great step towards that.' Hospitality and brewing groups say the tax freeze will support jobs, promote socialisation and provide general cost-of-living relief. Martin Ollman / NewsWire Credit: News Corp Australia
This two-year freeze helped support 300,000 hospitality staff, Mr Canny said.
'It is great to see the Albanese government has listened and acted on this unpopular hidden tax,' he said.
'There's no better place to have a beer than down at the local – they are a place for community and connection – and anything that makes it a little bit more affordable is worthwhile.
'It's a win for common sense in the middle of a cost-of-living crisis.'
The Brewers Association of Australia similarly enjoyed news of the freeze but had its eye on long-term change.
'We certainly thank the Prime Minister, the Treasurer and the Assistant Treasurer for backing this in,' Brewers Association chief executive Amanda Watson told NewsWire.
'Brewers will continue to work with the government to ensure future excise reform is looked at seriously to support a sustainable Australian brewing sector.'