Australian brewers are urging the federal government to reduce beer tax, drawing inspiration from recent cuts by the UK government.

Industry leaders express concern that the current tax regime is detrimental to Australia’s brewing sector, especially for independent brewers who are struggling to cope with rising costs and excise increases since the pandemic.

Kylie Lethbridge, CEO of the Independent Brewers Association, highlighted that independent breweries cannot absorb the increasing costs, which may lead to higher prices and job losses.

Economic analysis indicates that independent breweries contribute significantly to the Australian economy, generating $3.5 billion and employing over 40,000 people.

Local producers

Australia has the third highest beer tax globally, complicating the viability of local producers.

The UK government has responded to similar challenges by reducing alcohol tax and freezing rates to support the hospitality sector during inflationary pressures.

Breweries in Canada and Japan have also implemented measures to alleviate tax burdens for their brewers.