Australia: Australia’s beer prices set to soar next month
News General news
For those who have been considering reducing their beer consumption, now might be a good time to start. Inflation continues to hit the hop and is affecting the cost of beer in a big way. It’s anticipated that Australians may soon be paying A$15 for a pint, LAFM reported on January 19.
The beer industry is not happy, blaming increased taxes for the price hike. Starting next month, beer lovers will be hit with another cost-of-living blow as the tax on alcohol increases yet again.
Industry leaders are calling on the federal government to take action by freezing the tax and implementing urgent reforms to protect local manufacturing.
News.com reports that the beer tax will skyrocket to over A$60 per litre of pure alcohol due to indexation on February 1. CEO of the Brewers Association of Australia, John Preston, expressed concern over the negative impact this price increase will have on both brewers and beer enthusiasts.
“In many venues, people are already paying over A$15 for a pint. This is a significant amount considering the tightness of family budgets,” said Mr. Preston.
The excise on a pint will rise to about 90 cents, and the tax on a A$55 carton of beer will exceed A$20 plus GST.
The craft brewery industry in Australia is facing significant challenges as tax hikes and a decline in consumer support lead to numerous boutique brewing companies shutting down. The situation is worsened by rising running costs, with a 25-30% increase in the past two years, transportation costs up by 50%, and electricity costs up by 70%.
Independent brewers are particularly hard-hit, with Atle Crowe-Maxwell from DBA Reconstruction & Advisory stating that the excise tax is “decimating” the industry, constituting up to one-third of beer production costs. Several craft brewers have already declared bankruptcy in 2023, and former Independent Brewers Association Chairman, Mr. Philip, warns of more closures to come.
