No cuts to controversial beer tax in this year’s budget
The controversial proposal to halve the excise on draught beer to help pubs recover from the coronavirus pandemic was left out of Tuesday’s budget.
Both the Prime Minister’s and Treasurer’s offices denied they were behind pre-budget speculation the tax would be cut.
The excise has been controversial. Hard-alcohol lobby group Spirits and Cocktails said cutting the excise was a “sexist” play for male votes because men tended to drink more beer than women.
The budget did contain a targeted exemption from excise licensing requirements for pouring growlers – large takeaway jugs for draught beer.
The government was applauded by the Foundation for Alcohol Research and Education (FARE) for keeping the rest of the beer taxes as they were.
FARE stated, “The rumoured tax cuts were labelled as a gimmick by Australia’s top economists … and viewed by many Australians as a waste of taxpayer money.”
“FARE strongly opposes any moves to reduce taxes for alcohol companies and will continue to advocate for decision-makers to put the health and wellbeing of Australians first.”
The beer lobby was not happy with this decision.
“We’re extremely disappointed that the federal government has not cut draught beer tax in the budget,” Brewers Association of Australia chief executive John Preston said.
According to Mr Preston, next year Australian beer drinkers would pay the third-highest taxes in the world.
“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.”
Irit Jackson, 31st March 2022
