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.

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

Owner of the Delatite Hotel Dean Belle said there will be no price rises for the immediate future, with the pub increasing stock levels pre-excise increase to minimise and delay any increases.

“However the reality is that sometime in the near future a small price rise is likely,” he said.

Breaking down the cost of slab of stubbies or cans, Dean confirmed that a whopping 56 per cent of the total goes directly to government taxes and charges.

“For a $55 slab, $22 is the excise, $5 is GST and in addition there are charges for the Container Deposit Scheme,” he said.

“It leaves just $23.90 from the total to pay for production, packaging, wages, transport, overheads, and that’s before it even hits our shelves.”

Dean said the Delatite Hotel was fortunate to be part of the BottleMart franchise.

“Their buying power helps keep our prices down,” he said.

“But that doesn’t help smaller players and craft brewers, as everyone is getting squeezed.

“And this doesn’t even take into account new government charges like the Emergency Services Levy which is likely to be double the existing Fire Services Levy, costing our hotel over $6000 per annum.”

In a bid to address escalating costs, the Brewers Association of Australia has made 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.”

Whilst Dean professes he and wife Gill love running the hotel, price increases are impacting the affordability of a trip to the local pub for many people.

“We love providing good food and hospitality, hosting shows, contributing to community, and providing a venue for special nights and occasions, but we - and others - are really feeling the pain of so many government fees and charges which are increasing way more than inflation, especially here in Victoria.”