Beer excise tax killing off Aussie craft breweries

[YAPN]

The beetroots' probably necked enough piss to keep half a dozen micros out of receivership.
At least Joyce only humiliated himself publicly this time and not his long suffering wife and kids.
Semi comatose and mumbling obscenities in the street, or ******* around with the help. What quality public servants we have here..

Grubby old perv.
Still say he was punching well above his weight tho..

F... me, for once I agree with you

 

[Dave70]

F... me, for once I agree with you

Really?
Sixteen years, five and a half thousand posts and only once?
Wow. Some people are hard to please..

 

[droid]

Just got a text from a friend saying Red Bluff brewery is for sale looks quite reasonable, they make some regular beers and some craft ones, nothing to wild that I have tried there. https://www.commercialrealestate.com.au/business-for-sale/local-craft-brewery-2018570340

Then I found the actual site for sale, which is what I would have expected for a brewery proper, https://www.realcommercial.com.au/for-sale/property-11-old-bunga-road-lake-bunga-vic-3909-504456696?sourcePage=rca:for+sale:srp-map-hybrid&sourceElement=map-tile

Then I started looking around and found that Anvil is up for sale too, https://www.realcommercial.com.au/for-sale/property-anvil-brewing-co-13-15-high-street-mansfield-vic-3722-504485228?sourcePage=rca:for+sale:srp-map-hybrid&sourceElement=map-tile

And Bullant https://www.realcommercial.com.au/for-sale/property-bullant-brewery-46-main-street-bruthen-vic-3885-503790214?sourcePage=rca:for+sale:srp-map-hybrid&sourceElement=map-tile

I wonder if this is a symptom of the squeeze breweries are facing now?

Bullant has been for sale for ever but yeah, aint no time to be setting up a brewery proper

 

[chappo1970]

Recession Time is here folks.
Let's just hope it doesn't get worse
Here's a photo of this years bunny rabbits (winter dinner plan) to make you feel better

 

[Feldon]

I think it’s a completely BS argument. Have a look at the excise tables for 01/02/2024.

Scroll down to the Beer in a keg for pub serve, Excise has gone up by less than $1/L.
That’s calculated on the L of alcohol in the keg. Say a 50L (48L of beer) at 5% ABV; we are talking about 2.5L of alcohol. The tax could have only gone up by about $2.50. That’s over a typically 118 Schooners (yes NSW) so less than 2cents/schooner, sweet FA.

If your business model is so bad that that 2c/serve is going to send you broke, get a better model, accountant, industry you’re in the wrong one!
Mark

Talk about BS. No one is claiming that one incremental tax increase in February is sending craft breweries broke. It's the cumulative effect of relentless tax increases over time, AND the punishment of beer drinkers vs. wine drinkers.


Independent Brewers Association (IBA) demands liquor tax changes from Federal Government

Currently, the unequal alcohol taxation regime is making small breweries unviable. According to the IBA, tax excise accounts for approximately 45% of the overall cost of an IPA produced by an independent brewery. The beer tax excise means that beer drinkers pay double the tax per standard drink compared to bottled wine, or eight times the amount compared to cask wine.

“We face an unequal taxation regime that increasingly has beer being taxed at a higher rate than wine,” said Lethbridge.

“If excise is supposed to be a tool for harm minimisation – then the Federal Government really needs to take a look at its own data and create an equal playing field that meets its own policy objectives.

“We are simply asking for common-sense reforms that go some way to creating equity for small breweries in a market stacked against them.”



https://www.drinkstrade.com.au/the-...ng-liquor-tax-changes-from-federal-government

 

[GalBrew]

The only thing that will be accomplished by demands such as this is the increased taxation on wine. There will never be a reduction in alcohol tax for beer.

 

[Dave70]

The only thing that will be accomplished by demands such as this is the increased taxation on wine. There will never be a reduction in alcohol tax for beer.

Absolutely.

Anybody who imagines the ATO will repeal such a lucrative source of revenue they can justify under the 'harm minimization' banner is delusional.
About as much chance as getting ciggies back to ten bucks a pack.

 

[Feldon]

A staged reduction in beer tax properly set and administered can lift sales of beer (which have been in decline for years) resulting in an overall net increase in tax revenue for the government, despite the tax per unit volume of beer being less than before.

And to conflate tobacco tax with beer tax under the sweeping guise of ‘harm minimisation’ ignores the stark difference in the policy agendas of the two. With tobacco the government is intent on driving tobacco use into extinction through high taxation. This is NOT the agenda with beer tax (or wine tax, spirits tax etc), There is no government policy agenda for achieving effectively a prohibition on alcohol use through high taxation.

As for the idea that the government might increase the tax on wine to offset a reduction in beer tax, I think that an unlikely outcome. In an economic environment where interest rates and inflation are rising (and seem set to get worse) any government or opposition that calls for increased taxation on the ordinary household budget is going to face harsh retribution at the ballot box.

 

[Dave70]