A COLD one from the bar is becoming more and more of a luxury people are struggling to afford according to one local business owner, as the latest beer tax came into effect this week.

The biannual alcohol excise increase occurs every February and August and is tied to the Consumer Price Index (CPI), which has nudged the pub beer tax to $43.39 per litre for beer exceeding 3.5 per cent.

The 3.5 per cent increase on the price of beer also comes with the rise on spirits and other excisable beverages to $104.31 per litre of alcohol, from $103.89.

Owner of the Town and Country Tavern and Westside Tavern Shayne Gannon said price increases at the establishments were finalised on Tuesday, which will see the price of a beer on tap rise around 10 to 20 cents depending on the size.

A much larger increase was applied to spirits and premixed drinks on tap, like Hard Rated and Canadian Club, which Ms Gannon said have gone up more than $12 a keg.

“I think it’s very slowly killing an industry that forms a big part of the Australian landscape,” she said.

“The ability to be able to go and have a beer on tap in a pub in Australia is so much a part of our community and culture and it’s becoming a luxury.

“There’s a lot of people who can’t afford to go down to the local pub for a meal and a drink because these sort of price increases are taking that availability away.

“We’re going to see more and more pubs and restaurants closing their doors, certainly in regional areas it’s becoming very difficult and very competitive.”

As of last year, the excise on beer and spirits had increased more than 17 per cent since the beginning of the pandemic.

Ms Gannon said her businesses endeavour to be open about the incoming price rises to their customers.

“We wear the brunt of the complaints, so we just try to make sure we inform people along the way that it’s certainly not our decision,” she said.

“Unfortunately we get the backlash of people saying it’s expensive and how they don’t get change back from a $20 note just to get two beers over the bar and I think that’s what people are struggling with.

“As much as they’re disappointed, they’re very understanding.”

Ms Gannon said the hospitality community needed to continue raising awareness on the “destruction” the tax is creating in the industry.

“I’m against it all together, I don’t think there’s a better way to manage it,” she said.

“The hospitality business is a big contributor from a tax perspective, but they’re going to slowly kill off that contribution as well.”

The Brewers Association of Australia made a last minute submission to the Federal Government’s Treasurer’s Budget consultation process calling for urgent action to address the high rates of tax.

Brewers Association of Australia CEO, John Preston said the country has one of the highest beer tax rates in the world and there was no need to keep raising the bar.

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

“On behalf of brewers and beer drinkers across Australia we are asking for urgent action to address the high rates of beer tax.”

Ms Gannon said customers will see a rise of around $1 to $2 in their packaged products in bottle shops, but she encouraged customers to continue looking for ongoing deals with products.

“We’re really lucky with Thirsty Camel, they’re very driven with their promotional program so I think people will get savvy with buying their beer on promo to avoid these higher price increases,” she said.