Beer drinkers are bracing themselves for a hit to the hip pocket after Australia's largest beer tax hike in 30 years was implemented on Monday.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Tax on beer increased by more than $2 a litre (up four per cent) from $53.59 per litre of alcohol to $55.73, and tax on the cost of a keg jumped by $4, raising the cost to almost $74.
Cessnock Hospitality Group chief executive officer Paul Cousins said the price of beer at the group's three venues (Cessnock Leagues Club, Vincent Street Kitchen and Bar and Paxton Bowling Club) would remain steady for now, but may have to be reviewed in the coming months.
"We normally just put our prices up once a year (in July), but there will be at least some internal consideration for another cost rise," he said.
"There won't be an immediate reaction, but over time it will put pressure on pricing.
"Some (other venues) will put their prices up today, some will in the coming months."
In addition to the latest beer tax rise, the hospitality group gave its staff a pay rise on Monday, two months before the award increase is set to kick in.
"So it's a two-fold effect - with the cost of the beer and the cost to serve the beer," Mr Cousins said.
"We are starting the new award increase from Monday (August 1) as a goodwill gesture to our staff.
"The wage increase isn't a negative - the staff deserve it - but you've got to be able to afford it."
Mr Cousins said clubs are positioned to maintain their value-for-money business model, but rises such as these were making it "increasingly challenging".
He said there's no avoiding the beer excise, but said it was time the government reviewed the "outdated" model.
Designed to be a public health measure, beer tax in Australia goes up every six months (on February 1 and August 1) in line with the consumer price index.
The Brewers Association of Australia is calling for the federal government to cut the "hidden beer tax" before the next deadline.
"Australia's tax on beer is going up yet again with (Monday's) increase being the largest in more than 30 years," Brewers Association of Australia chief executive officer John Preston said.
"Australians are taxed on beer more than almost any other nation. We have seen almost 20 increases in Australia's beer tax over the past decade alone.
"Brewers and pub and club operators were extremely disappointed the former Government did not deliver on a proposed reduction in beer tax at this year's March budget.
"Sadly, we're now seeing the impact as pub patrons will soon be faced with the prospect of regularly paying around $15 for a pint at their local.
"For a small pub, club or other venue the latest tax hike will mean an increase of more than $2700 a year in their tax bill - at a time when they are still struggling to deal with the ongoing impacts of the pandemic.
"This is a problem that the new treasurer has inherited from his predecessors and there are many competing demands on the budget.
"Nonetheless, we believe there is a strong case for beer tax relief to be provided by the new federal government - with the hidden beer tax to go up again in February 2023."
Treasurer Jim Chalmers told ACM he will always listen to any ideas to stem price rises.
"Having inherited a trillion dollars in debt, and with lots of other pressures on the Budget, it's not possible to fund every one of them," he said.