Major Plea Over Crippling Aussie Beer Tax Sparks Industry Concerns
Australian brewers urge government to reduce beer tax to save local industry and jobs amid rising costs and economic challenges
Australia, Beer Tax, Brewers, Craft Beer, Economy, Kylie Lethbridge
Glenworth Valley: Australian brewers are sounding the alarm over a hefty beer tax that could seriously hurt their industry. They’re worried it might even wipe out some beloved local breweries.
In the last year and a half, many independent brewers have struggled with rising costs and taxes. About 20 of them have already closed up shop since COVID hit, which is a real bummer for craft beer lovers.
Kylie Lethbridge, the CEO of the Independent Brewers Association, pointed out that while big foreign-owned companies might handle these tax hikes, smaller brewers can’t keep up. They can’t keep absorbing costs without raising prices, which means fewer people can afford to support local breweries.
She mentioned that every dollar spent on taxes is a dollar that could have gone back into their businesses, helping them grow and support their communities.
Interestingly, Australia ranks as the third highest taxed beer-producing nation globally. That’s a tough spot for a country that loves its beer!
Economic studies show that independent brewers contribute a whopping $3.5 billion to the economy and provide jobs for over 40,000 people. They also help out other sectors like agriculture and logistics.
But the last year has been rough, with high taxes and living costs making it even harder for these brewers to thrive. Kylie said it’s reaching a tipping point where something has to change.
Other countries, like the UK, have already taken steps to ease the burden on their brewers. They’ve cut alcohol taxes and frozen duties to help the industry cope with rising costs.
Beerfarm, a local brewery, is trying to expand despite these challenges. They’re opening a new site in Glenworth Valley that will produce up to 2 million liters of beer annually. That’s a big deal!
Ian Atkins, the founder of Beerfarm, expressed his hope that the government would notice the struggles of the craft beer market and take action. He pointed out that it’s pretty wild for a beer-loving country to have such high taxes.
He also noted that while the UK is helping its brewers, Australia seems to be lagging behind. The new facility in Glenworth Valley is set to open next year, and they’re optimistic about its success.
However, there are still worries about the future. The brewers’ association chief, John Preston, highlighted that while other countries are cutting taxes, Australia’s rates keep climbing.
With the next tax increase coming up in February, many are feeling the pinch. Page MP Kevin Hogan mentioned that a significant portion of the cost of beer is now tax, making it tough for consumers.
He acknowledged that while the original intent of the tax was to discourage unhealthy behavior, it’s now making things unaffordable for many.
Local MP David Gillespie is pushing for a freeze on alcohol excise to help keep small breweries afloat. He emphasized that local businesses keep money circulating in the community, which is vital.
In response, a spokesperson for the Treasurer said that these tax increases are standard and have been happening for years. They’re open to ideas but have to balance them with other budget priorities.