Concern over ‘devastating’ alcohol tax cut possibility
The Daily Telegraph has reported a proposal to reduce the excise tax on draught beer by 50% is under ‘serious consideration’ by the Federal Government for the next budget.
The Brewers Association of Australia has been calling for the cut, citing reductions in trade due to the COVID-19 pandemic, while lobby groups for the spirits manufacturers have called for any tax reduction to be extended more widely. While the Government has not confirmed the report, it has been greeted with concern in some quarters.
An open letter has been sent to the Treasurer following reports the Federal Government is weighing up a reduction in beer excise duty.
The Australian Taxation Office (ATO) recently increased its excise rates on alcohol, which change twice a year in February and August to align with the consumer price index (CPI). The Brewers Association describe Australia as having the fourth highest beer tax in the world, while statistics published by the ATO show that 2021 was the highest year for excise duty on beer for several years. In 2021, ATO recorded 45,873,882 litres of alcohol subject to excise duty on beer, the highest it has been since 2013–14. The potential tax cut would reportedly cost the Government $153 million.