The federal government's decision to freeze the tax on draught beer served in licenced premises for two years from August has been welcomed by drinkers and the industry, but the "bad" news is it doesn't mean prices won't rise.
The Brewers Association of Australia described the government decision as "welcome but moderate" after 40 years of twice yearly increases to the excise gave Australia the third highest taxed beer in the world.
Chief executive officer John Preston said he now hoped the coalition parties would make a similar commitment on the tax.
Drouin publican and a Victorian councillor of the Australian Hotels Association, Simon Appleby, also welcomed the government's move but stressed it was only one of many costs that affected beer prices.
He also stressed the freeze only applied to draught beer served from the tap in bars and poured into glasses.
It won't apply to other alcoholic drinks served over the bar including wines, spirits and mixed drinks.
Nor will beers and other alcohol sold through bottle shops be exempt from the tax.
Mr Appleby said cost of living increases, combined with considerable rises in overhead costs, had seen public bar drinkers in hotels drop across the board and many hotels had closed including two in Warragul in the past couple of years.
Many others were no longer trading seven days a week and/or had reduced opening hours.
It is not just in the country, city hotels also were under considerable pressure and many have closed, Mr Appleby said.
He cited large increases in insurance costs - many hotels can no longer afford to insure - Victoria's heavy increase in land taxes, and rises in electricity costs especially for refrigeration, staff wages and transport costs continually added to the pressures on prices.
The introduction in the state of a consumer deposit scheme at the time of purchase to encourage recycling of drinks sold in cans and bottles meant an additional charge had to be levied at the point of purchase, Mr Appleby added.
News
Beer excise freeze welcome ... but
Mar 11 2025
1 min read
Subscribe to The Warragul and Drouin Gazette to read the full story.