The price of drinks will rise again on Monday as businesses and consumers face higher taxes.
Taxes on beer and spirits rose 2 percent on Monday.
Twice a year the Australian Taxation Office looks at the Consumer Price Index to see how much the cost of various products has changed. In addition, taxes (excise duties) on alcohol produced here are increased if the Consumer Price Index has risen.
There are different excise duties for beer, products with less than 10 percent alcohol, and then spirits and other excisable drinks with more than 10 percent alcohol. Wine falls under a different tax regime.
The tax on making a keg of medium-strength beer has increased from $32.33 to $32.98. Each keg of full-strength beer now costs the manufacturer $43.22, up from $42.37.
Just under half the price of a carton of beer is made up of taxes, and the excise tax increase will increase the price of a beer by about a dollar.
The latest data shows that hospitality companies are facing financial problems.
Research published in May found that one in 13 Australian hospitality businesses will go bust in the next year.
There will be another increase in the price of drinks on Monday as businesses and consumers face a tax hike (stock image)
The Brewers Association of Australia reported that 373,500 full kegs had to be dumped in Australia during lockdowns over the Covid pandemic as beer venues were unable to trade and the perishable beer spoiled.
Ben Fordham said on his radio show Monday morning that his network has been monitoring brewery closures across the country and that in the past 18 months, 30 breweries across the country have closed their doors.
“People are drinking more at home, which is not good for pubs and for people who like to drink with others,” Fordham said.
According to Greg Holland, managing director of Spirits and Cocktails Australia, linking excise duties to the consumer price index is pointless.
“It is now abundantly clear that the automatic indexation of excise duties to the consumer price index (CPI) has lost its usefulness as a revenue-raising measure,” he said.
“Our hospitality sector is on its knees. Another tax hike will only increase the cost burden for struggling venues.”