Pubs and clubs are begging the federal government to show venues a bit of love and slash beer taxes after a Covid-blighted summxjmtzywer.
The Australian Hotels Association, Clubs Australia and the Brewers Association on Monday launched a campaign with Queensland pubs and clubs for a 50 per cent cut to the twice-yearly scheduled tax hike on draught beer that is due to come into effect on Tuesday.
“Twice a year for 35 years pubs and drinkers have copped a tax hike on draught beer,” Queensland Hotels Association chief executive Bernie Hogan said on Monday.
“This year – after our members have done the right thing throughout the pandemic and at a time when jobs and businesses hang in the balance – we ask that pubs and drinkers get a break.”
The organisations want the tax levied on a keg of beer cut in half – from $70 to $35 – arguing that it would reduce that tax bill of an average pub by $500 and the tax payable on a single pint of beer by 40 cents.
Australia has the fourth highest tax on beer behind Norway, Finland, and Japan out of countries in the Organisation for Economic Co-operation and Development.
In Brisbane, Paddo Tavern owner Matt McGuire said pubs and clubs had done their part during the pandemic by shutting their doors during lockdowns and working to strict health protocols.
“We accept it was in the country’s best interests for us to take one for the team during the pandemic. We’re not asking for a handout, just a decrease on the tax burden,” Mr McGuire said.
Brewers Association chief executive John Preston – whose group represents most major brands – said a 50 per cent cut in draught beer would reduce the federal government’s revenue from alcohol tax by only $150m a year, or around 5 per cent of total beer taxes collected.
He said the federal government had an opportunity in the upcoming federal budget to give pubs and clubs a fighting chance.
“Other countries have been reducing their tax on draught beer to give pubs and beer drinkers a break,” Mr Preston said.
“The industry is telling us they want to help out their patrons as well as employ more as they rebuild. But the high level of tax is holding them back.”
