Tax is bursting the craft beer industry bubble

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Australia now has the world’s third-highest beer tax after Norway and Finland and it’s wrecking the brewers, says the Independent Brewers Association.

While drinkers look forward to toasting International Beer Day next Friday, Australian craft brewers are drowning their sorrows over a tax regime they say is crippling their industry and is now the third highest in the world.

“There comes a point where you can’t continually absorb that, and then you try and pass it on to the punters and you’re losing business,” Perth craft brewer Travis Moore said.Independent Brewers Association chief executive Kylie Lethbridge said the industry lobbied the government for relief in this year’s federal budget but their calls for a 12-18 month freeze on excise were ignored.

With the ACCC, saying there’s definitely an issue with the regulatory framework for beer in Australia, the IBA plans to make a formal submission to the consumer watchdog requesting an investigation. Moore, who is a co-founder of Phat Brew Club, said brewers were also being impacted by the cost-of-living crisis and reduction in discretionary spending.“People are still going out but spending a lot less than what they traditionally would,” he said.

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