The Australian Tax Office have increased the beer tax by four cents and hospitality venues are worried about the future

On Monday, August 1, 2022, the Australian Tax Office (ATO) increased the excise duty rates which pubs and clubs must pay on the purchase of alcoholic beverages.

The tax on a keg will see a rise of $4 and the tax on a pint will rise from 80 cents to 84 cents.

Owner of Willunga's Old Bush Inn, Gavin Collings said the price hike has been going on for 20 years and changes every six months.

"I know what's going to happen," Mr Collings said.

"Families will come in and eat, and then they won't drink. It'll be too expensive.

"The price changes every six months. It has since I've owned the place, and I've owned it for several years.

"These price increases have gone on for 20 years and the governments won't stop it because it's a continuous cash flow for them.

"I should be charging $11 for an SA standard pint for Coopers or West End, but we want people to come to the pubs. We want them to enjoy themselves and be social. The governments drive them away.

"The price hike just keeps getting passed on and accepted. I feel like it's just another tax that really doesn't need to be added on. It can feel like I'm just a tax collector for the government every quarter."

Smiling Samoyed Brewery owner, Kate Henning said that while there's an excise rebate for small businesses that allow them to compete, she thinks price hikes could affect tourism in the region, but it would depend on what kind of market the consumer chooses to enjoy.

"There are some places that you're already paying up to $15 a pint," Ms Henning said.

"That really depends on what beer it is. If you're a consumer that wants to go out and try those beers, that probably won't affect their day out.

"But, with general costs of goods, wages and freight all going up, that will have a bigger impact on regional businesses. Micro-brewing is a labor intensive pursuit and can affect the cost of our goods."

Craft Beverage Consultant for Smiling Samoyed Brewery, Hayley Pember-Calvert thinks people understand that when supporting a local product, prices could be higher.

"If people are supporting a local independent brewery, that is family run and owned, I think they understand all the hard work that goes into it all and will continue to support them," Ms Pember-Calvert said.

"They do all their own deliveries, it's brewed on site and packed there. People do it all and I think that's recognised and appreciated."

Mr Collings believes that if the tax continually grows, it will affect social situations and hospitality venues will second guess their future.

"There's going to be a breaking point," he said.

"It's going to get to a point where we ask ourselves 'how much more do we want to put up with this' and punters will ask themselves the same thing.

"Rounds are no longer a thing because of rising prices. Gone are the days of buying your mates a round of beer. People just buy for themselves these days and it's understandable, but it's breaking that social aspect that we all enjoy.

"At one point in time you could have a night out on $20, now you'd be lucky to get two beers. It's going to drive people away.

"You can't just keep asking your local clientele to keep on paying the increase. Having a knock off will become a thing of the past and it's a shame. The game is totally changing."

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