The increase in beer taxes is expected to put more pressure on small breweries, and this could lead to higher prices at the tap.
According to data from KPMG, about 700 breweries in Australia contribute almost $2 billion to the country’s economy annually.
They employ over 10,000 people and are more than half of the beer industry’s workforce.
The number of breweries has significantly increased over the past eight years.
However, the boom is starting to wane, with at least 20 of them closing in the past year.
Many of these small breweries struggle to compete against larger firms, which have lower production costs. Australians are also suffering due to the cost of living crisis.
One of the main factors that has affected the operations of small breweries is the continuous increase in the beer excise, which follows the CPI (consumer price index) every six months.
The last two increases, which occurred in August and February this year, were equivalent to an eight percent increase.
Due to the continuous increase in beer taxes, Australia has one of the highest beer taxes in the world.
It is expected that the tax will go even higher when the CPI indexation for July 31 comes.
According to Joel Meaney, the operations manager of Dad and Dave’s Brewery in Sydney, about a third of the cost of a glass of beer is due to taxes.
According to him, the brewery has to increase its prices by around $1 or $2 every time the tax increases occur.
He said that it felt like there was nothing that could be done to stop the situation from getting worse.
To keep their customers coming back, the brewery has had to implement other strategies to make up for the increased costs.
The BeerFest Sydney, which will be held in December in Darling Harbour, is a major festival that aims to put Sydney’s vibrant craft beer scene on full display.
However, even though the event is full of love for the amber goodness, James Harding, the festival’s co-director, said that the message should be sent out to the public.
He said that brewers get to learn a lot from their customers.
During the festivities, the message is clear: supporting local producers is more important than ever.