The Australian Tax Office (ATO) is currently examining the definition of beer, which could lead to the price of this beverage becoming more expensive.
This process will help them determine how much alcohol has to be taxed. The agency is also looking into the effects of certain flavoring and water on the wording.
Beer’s definition helps differentiate it from other types of alcoholic drinks, such as spirits.
But, according to Kylie Lethbridge, the industry could be in danger of going out of business.
She stated that the proposed changes to the definition of beer could lead to the end of small-scale breweries in Australia.
This would affect products such as beer, as well as other alcoholic drinks. It would be very unaffordable for people in the country who want to go out.
Due to the cost-of-living crisis, the Australian Tax Office released a draft of its definition of beer. It stated that this type of beverage has a bitter taste and a mid-to-low alcohol level.
The previous version of the definition of beer was introduced in 2009. It stated that the fermentation process of yeast using either unmalted or malted cereals resulted in the creation of a type of beer.
Other substances, such as hops, may be added to this beer if the spirit does not contribute more than 0.5 percent to the total volume of the product.
However, this definition could be very misleading since some types of beverages, such as sugary sodas, can be brewed in a similar manner.
While the current definition mainly focuses on the process of brewing the beverage, the draft determination indicates that the final product may be classified differently for tax purposes.
This could cause the price of various alcoholic drinks to increase.