Pub owner's plea as yet another beer price hike takes effect

Buying a beer at the pub will become more expensive from today as the federal government's latest six-monthly tax hike takes effect.

The amount of alcohol excise charged for beer and spirits increases twice a year, in February and August, in line with inflation.

The latest alcohol excise increase, of between two to three per cent, takes effect from today, February 3.

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It means a pint of beer could rise to about $15.

Iain Ling, who owns The Lincoln pub in Melbourne, told Today the relentless tax increases amid a cost of living crisis were making it increasingly difficult for publicans and customers alike.

"It's just getting harder and harder," he said.

"We've gone through all of these struggles together as a community, as pubs are and it's just nice for people to spend their free time and their spare income and the government just seems to be making that harder for them.

"It's not a one off raise, it's a very, very regular thing which we need to be able to have a conversation about - you don't have to reduce it, but maybe just pause it for a while - there's different ways that we could be looking at this."

The latest price hike was opposed by the Brewers Association of Australia, which made a last minute submission to the Treasurer's Budget consultation process.

"On behalf of brewers and beer drinkers across Australia we are asking for urgent action to address the high rates of beer tax," Brewers Association of Australia CEO John Preston said last week.

"We already have one of the highest beer tax rates in the world – there is no need for it to keep going up twice a year.

"Australians are doing the right thing and drinking responsibly."

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Preston says the increase in tax will make it impossible for Aussies to enjoy a cold one at an affordable price.

"All these tax hikes are doing is making it increasingly unaffordable for Australians to head out to their local for a beer," he said.

"Last year the newly elected Labour Government in the United Kingdom used its first Budget to continue the reductions in beer tax that were started under the previous Conservative government.

"We believe the Treasurer should follow the example of his British counterpart and give much-needed relief to beer drinkers and our hospitality sector."

The alcohol tax is a revenue stream that brings in millions of dollars for the government.

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