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Earlier today, Treasurer Jim Chalmers, issued a ‘warning’ to pubs not to dupe Aussie beer drinkers over the incoming excise tax increase because he says it amounts to less than a cent per schooner or pint.

Chalmers thinks that the beer drinker doesn’t understand what is actually happening – this is not about the 1% today – it’s about it going up twice a year for decades.

The facts are that:

• We are the third highest taxed beer producing nation in the WORLD.
• Excise on beer increases every six months and has done since 1988 – with no end in sight.
• The average price paid for a 425ml glass of beer at a venue in Australia has increased by 6.2% in the last 12 months and since the start of 2022 beer prices have gone up by 10.5%.
• Approx. 21% of the price of a full strength six pack is tax.
• Wine – which is taxed differently hasn’t increased since 1999.

An inquiry into the competition led by Chalmers own government concluded that “Australia has one of the most restricted beer sectors in the world, with two large foreign-owned corporations dominating beer supply, and two large companies dominating the retail beer sector” … and heard evidence that the two foreign owned breweries derive as much as 40% profit margins on their beer.

That is not the case for our small Australian owned independent brewing businesses. In September 2024, 48% of our members reported that they are not able to sustain profitability.

In the period since January 2023, at least 47 breweries have entered voluntary administration or closed their doors. We estimate the true number to be much higher than that as a result of quiet and unpublished closures.   

This isn’t the first time Chalmers has dismissed the hardworking independent brewing industry referring to our contribution to Australia simply as a ‘line item’ in the FY2025 Federal Budget.

As we head into the election this year – independent breweries and their communities are going to be demanding that their new government take action to give small independent brewing businesses a fair go.

Decades of unfair and stifling regulation means that beer made by an Australian owned small business is becoming unaffordable – at the pub, at your local brewery or over a BBQ in your back yard.  And frankly that’s un-Australian.

If you want to support the IBA in our fight to make sure Australians have the option of an affordable locally owned independent beer subscribe here: https://independentbrewers.org.au/campaign-2025/