PRESIDENT UPDATE
Welcome to 2025! I hope everyone has had a busy summer period, the feeling around the state is that trade has been good. With a federal election on the horizon, our hospitality industry waits with bated breath on what policy announcements will be made to benefit our sector. Unfortunately – but unsurprisingly – the latest hike in alcohol excise tax has come into effect. As a sector that already operates on razor-thin margins in the current economic climate, the twice a year increases in alcohol tax are not only hurting small businesses but are now directly impacting jobs and livelihoods across Tasmania. The twice-yearly tax on alcohol increases in February and August may seem like a mere statistic to some, but they represent a real and pressing concern for operators who are already grappling with the pressures of rising costs like insurance, supply chain disruptions, and ever-increasing energy costs. These excise tax increases hit hospitality venues hard, giving businesses no choice but to either raise their prices or absorb the hidden tax. Neither option is sustainable, and in a post-pandemic environment, the last thing our sector needs is further burdens placed on it.
look at this policy. Our national body, as well as other peak associations in the alcohol sector, is calling for action on this double dip tax hike to provide much- needed relief. Without action, the price of socialising with friends is out of reach, having a devastating impact on employment in the hospitality sector, particularly in regional areas where we depend on it the most. This is the 83rd time this tax has gone up since 1983, and enough is enough. However, there is potential hope on the horizon. Opposition Leader Peter Dutton recently announced a policy aimed at supporting small businesses he would implement if the Liberals win the federal election. This proposal for a tax deduction of up to $20,000 for businesses entertaining clients in restaurants, cafes, and pubs is a welcome initiative. This is a start in addressing some of the challenges faced by those in the hospitality industry. This policy could provide a much-needed boost to our sector, encouraging spending in local businesses and stimulating demand at a time when it’s needed the most. We remain firm in our request for action on the twice a year excise increase and will continue to fight for measures to support small businesses. I believe revitalising our hospitality industry is crucial, for all governments and will continue to advocate for any measure to help to this end.
As we enter another year of tax increases, it is vital that the federal government takes a serious and urgent
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Tasmanian Hospitality Review Oct/Nov Edition
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