The price of a pint is set to skyrocket due to inflation, with a schooner of beer set to hit as high as $12, putting more pressure on the cost of living.
Beer is taxed by the Federal Government in line with inflation, and with inflation at nearly eight per cent the price of beer is also set to increase.
The price is indexed two times a year, with a 3.7 per cent leap this month following an increase of four per cent in August 2022.
The increase will affect pubs, bottle shops and clubs; however, Shepparton’s Wild Life Brewing Co will be left untouched.
Shepparton’s Aussie Hotel is one of the pubs that could feel the brunt of the tax hike.
Hotel owner Paul Tsobaris said the latest increase would not affect the pub’s bottom line too much, “but if it keeps going up, it’ll send us under”.
He said taxes increasing were another kick in the teeth following three pandemic-impacted years.
“It’s crazy that after everything we’ve been through with COVID, it’s hard to believe that the government wants to put more strain on businesses,” Mr Tsobaris said.
“Business has slowed up a little bit since the price increase, but I think because everyone knew it was coming, no-one was too shocked.”
Mr Tsobaris said if the prices continued to increase, he would have to turn away from major breweries and look to smaller suppliers.
“If it gets too high, we’ll have to turn to smaller breweries that are taxed at a lower rate,” he said.
Those smaller breweries could be beneficiaries of the tax rise, Wild Life Brewing Co director and brewer James Thomson said.
However, they are still facing rising costs of production.
“What people don’t realise is that smaller breweries are taxed differently,” Mr Thomson said.
“Excise tax for breweries is based off volume of beer produced each year, and we at Wild Life are under that minimum, so the increase won’t really affect us.
“We’re a small craft beer company. The price of aluminium, grain and power is what really hits us, and no-one really talks about that.
“It’ll more likely hit the big guys, like Great Northern or Carlton Draught and places that sell them.”