I run a Sydney brewery and unlike a pint of lager… the reality behind the bar is anything but golden

A brewery owner has criticised a looming beer duty hike and the rising costs of running a business in Australia.

Mike Clarke, co-founder of Sauce Brewing, said Yeah The sector was hit ‘from all sides’: some companies could no longer keep their heads above water and had to close.

“Every six months the excise duties go up, as always,” he said.

“But then you have all the other costs that come with doing business, which are rising faster than inflation. Think of the cost of goods, wages, property taxes, transportation, fuel, electricity and gas.”

Beer excise duty is set to rise for the second time this year on Monday, giving Australia the third-highest beer tax in the world.

The beer excise duty is determined on the basis of the alcohol percentage and the type of packaging and applies to brewers and distillers.

This year alone, 20 independent Australian breweries have closed, gone into administration or restructured due to the enormous pressure.

Mr Clarke has sacrificed so much to keep his microbrewery afloat, selling his house and going bankrupt to launch his business in Sydney in 2016.

Mr Clarke added that the sector is also affected by the cost of living, as Australian beer lovers are not spending as much as they used to.

He said his brewery is largely absorbing the increased costs because it’s not “realistic” to keep raising prices for its customers.

Mr Clarke said he has tried to future-proof his business to better cope with the ups and downs of the sector by diversifying.

Six months ago, the company launched Twizzle Cocktails, ready-to-drink cocktails in cans.

Joel Meaney, operations manager of Dad & Dave’s Brewing, said they are also absorbing the increased costs rather than raising prices for their already struggling customers.

Mike Clarke said the industry is also being hit by the cost of living crisis as Australian beer lovers are not spending as much as they used to (stock image)

He said this latest tax increase is the fifth in two and a half years and that the tax accounts for about a third of the price of every beer they sell.

According to Mr. Meaney, the price of a beer has risen from $10 to $14 in just two years.

“We’re trying our best to stay as true to Australian culture as possible and still make it feasible for people to come together and have a beer,” he said.

Mr Meaney added that his brewery is trying to offset rising costs by setting up a food truck and hosting quiz nights and live music at the venue.

The federal government bases every increase in beer excise duty on the consumer price index (CPI).

The CPI rose 3.8 percent year-on-year in the second quarter.

There have been calls for the government to scrap the increase in beer excise duty.

The Brewers Association has spoken out and the Australian Hotels Association is calling for a reduction in spirits tax.