Draught Beer Tax Relief

Australia’s biggest beer companies, Carlton & United Breweries (CUB), Coopers and Lions want the Morrison government to slash the tax on draught beer as continual coronavirus restrictions on the eastern seaboard (excluding Western Australia) have some pubs struggling with cashflow to stay afloat, with the price of a pint usually increased twice a year, thanks to government levies.

It’s a crafty budget fix for Treasurer, Josh Frydenberg to consider for the 2020-21 Federal Budget to be handed down on 6 October, just in time for Oktoberfest celebrations and would put a smile on the lips of publicans and brewery owners, not to mention the consumers.

CUB chief executive, Peter Filipovic reported to West Australian Newspaper’s earlier this week that “there is a need to make a beer at a pub more affordable and it’s as simple as that.”

A cut or at the very least a freeze on the excise tax, said to give hospitality businesses a chance to get back on track, where Australian pubs and clubs pay the 4th highest beer tax of all developed countries. Reducing the tax, also set to encourage more Australians to get out, enjoy and support our world-class hospitality industry.

The Federal Budget early next week will provide a further update on the economic and fiscal impacts of the coronavirus in Australia and is expected to set out the path to economic recovery.

Personally, I’d be supportive of a reduction of excise taxes on a more diverse range of alcoholic beverages, that would not necessarily be restricted solely to draught beer, but include wine and spirits also. A domestic tourism package tailored to the hospitality sector in the Budget would be more advantageous, promoting domestic distilleries and local produce, along with a continuation of JobKeeper and hospitality training programs through CentreLink to promote employment in the sector.

Fingers crossed for a cheaper pint at my local Otherside Brewing Company as a minimum, come mid-October.