Another rise in alcohol prices is on the cards on Monday as a tax increase is imposed on businesses and consumers.
Taxes on beer and spirits were effectively raised by 2 percent on Monday.
Twice a year, the Australian Taxation Office looks at the Consumer Price Index to see how much the cost of everything has changed, and the tax (excise duty) on alcohol produced here increases if the CPI has risen.
There are different types of excise duty for beer, products with less than 10 percent alcohol, and spirits and other excisable beverages with more than 10 percent alcohol. Wine is subject to a different tax regime.
The tax on the brewing of a barrel of medium-strength beer has risen from $32.33 to $32.98. Each barrel of regular strength now costs the brewer $43.22, compared with $42.37 previously.
Nearly half the price of a carton of beer is taxed, and the excise tax increase will add about a dollar extra to the price of a serving.
The latest data shows that hotel companies are facing financially challenging operating conditions.
One in 13 Australian hotel businesses is expected to fail next year, according to a study released in May.
Another rise in alcohol prices is on the cards on Monday as a tax increase is imposed on businesses and consumers (file image)
The Australian Brewers Association reported that 373,500 full kegs had to be dumped in Australia during the course of the Covid pandemic lockdowns as venues were unable to trade and perishable beer spoiled.
Speaking on his radio show on Monday morning, Ben Fordham said his network had been tracking brewery closures across the country and that 30 breweries across the country had closed in the past 18 months.
“More people will be drinking at home, which is bad for pubs and not good for people who like to socialise with others over a drink,” Fordham said.
Spirits and Cocktails Australia chief executive Greg Holland said linking excise duties to CPI was pointless.
“It is now quite clear that automatic indexation of excise duties to CPI has outlived its usefulness as a revenue-raising measure,” he said.
“Our hospitality industry is on its knees. Another tax increase will only increase the cost burden on struggling establishments.”
