PRESIDENT UPDATE
As we launch into 2024 full of optimism, hospitality again begins a new year needing to factor in an ever increasing and seemingly never-ending Federal Government alcohol excise hike. This twice-yearly “silent” tax, imposed each February and August, is pushing venues and producers towards breaking point and threatens to undermine our great industry. Last year the combined tax increases totalled 5.9 per cent. Factoring the first rise in 2024, the tax on beer with alcohol exceeding three per cent in an individual container less than eight litres is now over $60 ($60.12) while pub beer tax now effectively sits at $42.37 for beers over 3.5 per cent. The hits also continue for Australia’s spirits industry, after tax went past $100 for the first time in August last year, and now sits at $101.85 per litre of alcohol. Pints in some pubs will now cost more than $15 while $20 from the sale of a carton from a bottle shop goes directly to coffers in Canberra. The THA again joined the chorus of voices imploring the Federal Government to freeze this tax to give both operators and consumers a break. We’re already entrenched in a cost-of-living crisis and these continued increases simply add further strain and are unsustainable. Unfortunately, it is our patrons who will be hit the hardest as many owners – myself included – will have no option but to raise prices. I’ll be clear, this the last thing we want to be doing but our hands are forced when our politicians don’t listen to our concerns.
The other big issue with this tax which is often overlooked is the effect it has on inflation. The alcohol category was the biggest contributor to last December’s CPI quarter increase, accounting for a 2.8 per cent rise. Given we are only calling for a freeze, not a reduction, surely it will provide a multi-pronged impact of giving industry some breathing room while assisting curb inflation. Hospitality venues are the lifeblood of our local communities and we need to be doing everything we can to encourage people to visit.
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