Australia now has the third highest beer tax in the world, after Norway and Finland.
Independent Brewers Association
Independents are being pushed out of places by big brewers, Lethbridge said.
“We now have to compete with the beer sold in the supermarket as well. We see some of the Dan Murphy brands going to the kegs and these house brands being sold on the shelves at much lower prices than ours,” she said.
With the Australian Competition and Consumer Commission saying there is definitely a problem with Australia’s beer regulatory framework, the Australian Beer Association plans to make a formal submission to the consumer watchdog asking for an investigation.
In March, the House of Representatives’ economics committee found that Lyon and Cobb were able to exercise “significant market power” in Australia.
Brewers have also been hit by the cost of living crisis and reduced discretionary spending, said Moore, a co-founder of the Phat Brew Club.
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“People are still going out but they are spending a lot less than they traditionally would,” he said.
Like many craft breweries, Phat Brew was born out of a love of beer, not profit. It was founded by football club mates who persuaded friends and family to contribute their savings, and even their house deposits, to help launch the brewery and its associated venue.
There are around 700 craft breweries in Australia, and the industry has grown by more than 80% over the past eight years. The market is now worth $160 million. It contributes $1.93 billion to the economy and directly employs about 10,000 people.
Craft brewers are feeling the pinch due to the cost of living crisis and decreased discretionary spending.credit: iStock
Australia now has the third highest beer tax in the world, after Norway and Finland, according to the Australian Brewers Association. Excise duty on alcohol ranges from 14 to 37 percent of the price of beer.
Mr Moore said the industry needed a break from the continued tax hikes.
“Just to give everybody a chance to breathe, to give the price of beer a chance to breathe and to allow us to get through a tough time with the economy,” he said.
He said breweries had been given a tax break during Covid, but were then asked to pay it back in full, “which caused quite a few of them to go under as well.”
In the last 12 to 18 months, there have been 25 to 30 breweries that “are no longer around,” Lethbridge said.
The International Bar Association was preparing to make its case in next year’s federal election and “we will do everything we can to get our voice heard,” she said.
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