Australians who enjoy a quiet drink at their local pub are facing yet another increase in the Government’s hidden beer and spirits tax, which is set to rise for the 84th time since 1983.
The hike, effective tomorrow, comes as many Australians grapple with rising living costs.
Stephen Ferguson, CEO of the Australian Hotels Association (AHA), slammed the twice-yearly excise increases, calling them a “dripping tap” that steadily drains money from the pockets of everyday Australians.
“Beer and spirits excise already brings in $6.2bn to the federal government,” Ferguson said, “and it’s set to rise by another $800m by 2027.”
Ferguson argued that the regular increases, which happen every year, add an unnecessary burden on consumers.
“It’s money out of people’s pockets when they can least afford it,” he said, calling for an end to what he described as a “hidden tax.”
While the tax increase affects all consumers, Ferguson pointed out that it disproportionately impacts the hospitality industry, which provides jobs and serves as the heart of communities.
“These are the places where jobs are actually created,” he said, “and they should not be punished by government policies that raise taxes on the very goods they sell.”
Ferguson also pointed out that Australia’s beer tax is already the third-highest in the Organisation for Economic Co-operation and Development (OECD), with an additional $38 tax on a $60 bottle of whisky or gin. “That is outrageous,” he said. “The voters are awake to it.”
The tax increase is set to take effect tomorrow, with another rise planned for August 1, 2025. According to Ferguson, only the Nationals, led by David Littleproud, have voiced support for freezing the tax, while both Labor and the Liberals remain silent on the issue.
“Labor and Liberals alike need to listen and freeze this hidden tax on beer and spirits sold in pubs, clubs and restaurants,” Ferguson said.
“These are the places where jobs are actually created – and they are the heart of their communities.”