THA backs calls for politicians to start supporting hospitality
The federal government’s twice-yearly, silent alcohol excise, which last year saw increases of 3.7 per cent in February and 2.2 per cent in August, again comes into effect this month and is expected to be between two and three per cent.
Australia already pays the third highest beer tax in the world, behind Scandinavian countries Finland and Norway. The looming increase will see the excise on a pint climb to around 90 cents and the tax on a $55 carton of beer to more than $20 plus GST. Some cocktails are expected to rise to $24.
Last August’s hikes saw the tax on a keg of beer increase about $2 to $78.
Tasmanian Hospitality Association chief executive Steve Old said the industry has had enough, and it is time politicians started listening to the concerns of venues before it is too late.
“In the last 12 months businesses have been squeezed by increasing overhead costs – soaring power prices, higher insurance premiums and these continued silent alcohol excise hikes,” Mr Old said.
“At what point will the politicians start realising that continually increasing the tax on products could simply be the final straw for some venues who can no longer afford to absorb the costs?
“We recognise the government’s need for revenue, but this biannual increase in alcohol taxes is not the solution. Our industry is still in the process of recovery, and this move undoubtedly hinders our ability to bounce back effectively.
“It is also a slap in the face for our consumers, because they are the ones who are going to be further out of pocket. Hospitality venues are the lifeblood of local communities. They provide safe, regulated environments for people to socialise and enjoy a drink.
“Increasing costs will drive people away and back into drinking at home, and we saw during the Covid lockdowns the huge array of problems that arise from such scenarios.
“Industry across the country is not even calling for a reduction in the excise, but simply for it to be frozen. This alone would reduce burdening businesses further with additional financial pressures.”
While this is a federal government tax, Mr Old called on Tasmanian representatives to stand up to the powerbrokers in Canberra.
“Tasmanian treasurer Michael Ferguson has recently taken a swipe at Prime Minister Anthony Albanese and called for the $240m of federal funding for the AFL stadium at Macquarie Point to be exempt from GST sharing calculations,” Mr Old said.
“Will Mr Ferguson also go into bat for our hospitality sector and call for the alcohol tax to be frozen?”
