Media release – Tasmanian Hospitality Association, 1 August 2023
Beer tax hike another hit for hospitality
Tasmanian hospitality businesses already feeling the crunch from soaring power prices and cost of living pressures have received another blow following the federal government’s beer tax hike.
Implemented from today, the 2.2 per cent increase, on top of the 3.7 per cent hike in February, has pushed the tax on a carton of beer to nearly $25, while the tax on a keg will increase by about $2 to $78.
Australia pays the third highest beer tax in the world, now only behind Scandinavian countries Finland and Norway.
Many Tasmanian venues will have no choice but to pass on the cost increase to customers.
“Inflation is already causing huge issues in our industry with people having less disposal income and this twice-yearly tax increase from the federal government is just another slap in the face,” Tasmanian Hospitality Association chief executive Steve Old said.
“This is a hit on businesses but, more importantly, on the customers who frequent their locals.
“Venue staff are the ones who feel the brunt of frustrations from patrons when prices increase, so we have distributed posters to our members to highlight the cost rises are out of their control.
“Industry across the country has called for this tax, along with the soaring tax on spirits, to be frozen to enable our businesses to remain viable and keep customers coming through the door. If these taxes continue in the next few years we’ll be looking at $10 for a ten ounce and empty venues.”
