Beer Excise Increase

[TerritoryBrew]

I heard on the news this evening that the excise placed on draught beer by the Federal Goverment is set to increase. The excise increase means that the cost of draught beer will increase by 10 cents. The increase will also affect bottled beer causing an average rise of 50c.

I have not heard if this affects the price per stubbie or price per carton. If anyone could help that would would be appreciated.

I think some sort of advocacy in relation to this blight on the Australian Brewing Industry is required. Perhaps we could all write a letter to our member of parliament outlining the benefits of beer consumption and the flow on effect it has on the brewing industry. I propose a set of stickers "I Brew and I Vote". Probably over done but effective none the less.

I know as homebrewers this does not affect us in our passion to create great brews at home, but never the less, a stand must be taken, and I stand I will take.

I will appeal to my member of Parliament stating that if this dreconian measure is not removed, he will lose my vote and that of the Northern Territory drinking public. Perhaps, and I am drawing a long bow, the Australian drinking public too.

I will write to Today Tonight stating that now single mums will have to pay more to get drunk whilst they leave their children in the car when playing the pokies. They would be all over that.

I am going to write to 'Kochie' of Sunrise fame and get him to put it on his 'Roswall'. Dammit, I am going to appeal to all those beer drinkers in Australia to follow my lead. For we number thousands and our ranks swell continue to grow. We are strong in faith and I am not ruling out a Jihad on Beer Excise.

Who will join me in my fight?

Cigarettes went up too but I don't care about that.

Cheers,

Reece
"The Excise Free Beer Party"
Offical spokesmodel.

 

[Belgrave Brewer]

Reece,

I've recently made friends with a boutique brewer and have several friends who are at different stages of setting up microbreweries. I'm on that path as well, but still a few years away.

The current excise tax is already making it difficult for the boutique brewers!

Let me know what you find out and let me know if I can assist.

Cheers,
BB

 

[TerritoryBrew]

There is a draft letter written by Cam of Mountain Goat Brewery fame on the following website;

http://www.microbrewing.com.au/default.asp?ID=9427

Perhaps we could copy this, as is suggested, and send it in.

Cheers,

Reece

 

[Ducatiboy stu]

The government raises excise twice a year, and has done so for years. So really it is not anything new.

 

[Wortgames]

Good luck with it! This country seems to be all about looking after the wineries these days. Maybe the politicians all own vineyards or shares in Southcorp?

Increase the taxes on the working class drink, and give tax breaks to the 'struggling' Chardonnay set. It's Howard at his best!

 

[DJR]

The excise on a schooner of beer (400mL + head = 425mL) is about 36c, so a CPI increase of 3% is only about 1.5c. If every pub puts their prices up 10c then something is amiss!

Duty on 50L keg = (4.6 ABV - 1.15 excise free ABV) / 100 * 50 * $26.03 = $44.90
Duty per 400mL = 0.4 /50 * $44.90 = $0.3592c

 

[newguy]

The only Canadian qualifying competition for the American Homebrewers Association National Homebrew Competition has been hosted by the brewclub in Regina, Sask. for the past few years. Their comp itself is held at a brewpub, and the owner of this brewpub is quite well connected politically. This club holds a big banquet at the wrap-up of their competition at the brewpub.

A few years ago the guest of honour ( ) was the federal finance minister, who also hailed from Regina. He got up and made a grand speech about western Canadian grain and blah blah blah, then, in parting, said "and thanks for the taxes."

At this, all the homebrewers looked at each other as if to say "shhhh! No one tell him!" Homebrewing ingredients are exempt from the federal GST and all provincial taxes because grain, hops, yeast are all classified as food items. And apparently he didn't know it - thank whatever you regard as holy for that.

Sorry for the off topic post. Thought you might get a kick out of it. Politicians are generally clueless everywhere it seems.

 

[paul]

The governments always been all about taxing the drinkers and the smokers. These days I rarely drink at the pub as its too expensive. A SA schooner (285mL) costs about $3.60. The government knows people will still go to the pub and drink and smoke.

In 1994 when I became old enough to purchase grog a carton was $22. It now costs $38. During this time the only thing that has gotten cheaper is premixed spirits. UDL cans were 3 for $10 or $60 per carton. I can now buy a carton of UDL scotch and coke for $40.

If only my favourite beer got cheaper.

The only beer thats never gone up in that time is Crown Lager. It was $40 a box back then and you can still find it on special these days for $40.

 

[Adamt]

Just another reason to brew your own, though give it a few years and the good old Government will find a way to bend us over.

 

[tangent]

This country seems to be all about looking after the wineries these days.

yeah those wineries love that WET tax

 

[bugwan]

If only my favourite beer got cheaper.

My favourite beer gets cheaper every time a retailer of homebrew products has a sale!! Thank God for Grain & Grape, Craftbrewer.com and the rest.

It's a shame about how the excise affects the Craftbrew industry - I think Cam from Mountain Goat is leading the charge to have rules for breweries brought into line with whineries (pun intended). Probably best to join his cause than to start a splinter group. It's not a criticism of your position, but factions tend to hurt good causes...

 

[sam]

Furthering what bugwan said:

Cam's been working really hard on this. I haven't heard much about it recently, but I think they want to get the equivalent of WET, which is an excise break on sales up to $0.5 million per annum (I think).

Putting in 6-pack terms, it was something like ~$5 a sixpack, so the brewery can charge the consumer a couple of bucks less and still make a better profit. Obviously this would really help the micro-brewing scene in Australia grow and become more sustainable as a business.

Excise info at microbrewing.com.au

Cheers,

sam

 

[TerritoryBrew]

Prior to my first posting I knew of Cam's position and I fully support it. This post was intend to bring the excise issue to a wider audience. I think I may have acheived this.

I do not wish to form a splinter group and have previously added a link to the same site as was recommended by Sam.

Thanks though.

Reece

 

[bugwan]

No worries Territory - I wasn't having a dig or anything, I certainly share your sentiments.

It's a good thing these causes exist, sadly though, the following for the brewers doesn't match the masses behind the wine makers... As long as we keep making noise!

Cheers

 

[drsmurto]

From Scott at Red duck brewery

As a small and regional based micro-brewery we need your help.
We are currently burdened with a excise tax on beer, which has just had
another increase to $38.20 per litre of Alcohol.
Unlike the tax on wine, WET, which is capped at 29%, and unlike small
wineries, we can not get any rebate.

We are lobbying the federal government to change the legislation so
that micro-breweries can receive the same assistance that small
wineries do.
The benefit to all micro-breweries, and especially to us at Red Duck,
is that by removing the excise, we will be able to use the funds to
possibly:
1) pay ourselves a wage!
2) purchase more/better equipment
3) employ
4) build a cellar door
5) grow our business
6) enable us to be more competitive

and importantly, the above would help us stop working 7 days a week,
and get time to see our kids again.

You would be surprised to learn how taxing (pardon the pun) excise is.
It is our largest single cost in producing a beer.

You can help.

Please write or email to your local federal member. Please say that you
support our lobbying to remove the current excise legislation and
replace it with a scheme such as the WET and the rebate that small
wineries receive.

We have had 3 increases in the excise since we started, and have not
put our prices up once. There will be another increase in excise on 1st
August 2007.
Our hope is that the legislation can be changed before then.

The latest Victorian association of micro-brewers submission is
attached, if you have time to read it.

Thanks
&
cheers

scott


This is the sort of tax that prevents Australia from having a thriving microbrewery culture and hence, a decent range of good commercial AUSSIE beer!

Cheers
DrSmurtoView attachment 11526

 

[Simon W]

$38.20 per litre!?
$3.82 sounds more like it.

At 38.2/L it would mean that Little Creatures would be taxed $12.60 per 330mL stubbie!

At $3.82 its $7.50 per sixpack.

Simo

 

[kook]

$38.20 per litre!?
$3.82 sounds more like it.

At 38.2/L it would mean that Little Creatures would be taxed $12.60 per 330mL stubbie!

At $3.82 its $7.50 per sixpack.

Simo

$38.20 per litre of alcohol, not beer.

Ie: 330ml of 5% abv beer will contain 16.5ml of alcohol. Thats about 63 cents a bottle.

 

[geoffi]

$38.20 per litre!?
$3.82 sounds more like it.

At 38.2/L it would mean that Little Creatures would be taxed $12.60 per 330mL stubbie!

At $3.82 its $7.50 per sixpack.

Simo

Pretty sure we're talking specifically about the "alcohol" here, rather than the beer as such.

 

[Guest Lurker]

$38.20 per litre!?
$3.82 sounds more like it.

At 38.2/L it would mean that Little Creatures would be taxed $12.60 per 330mL stubbie!

At $3.82 its $7.50 per sixpack.

Simo

Only about 4.5% of that sixpack is alcohol.

 

[Simon W]

Duh!! I hadn't made that connection. LOL

Thanks guys.