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Beer taxes rise at fastest pace in decades as inflation squeezes patrons

Beer producers are warning Australians will pay more for booze after soaring inflation spurred the largest set of alcohol tax hikes in more than a decade.

The Australian Taxation Office on Monday increased beer excises by between $1.84 and $2.14 under a twice-annual indexation of tax charged to breweries.

And it won’t be long before the hikes – which each equate to about 4 per cent for producers – are passed on to consumers, according to Brewers Association CEO John Preston warned.

“Pub patrons will soon be faced with the prospect of regularly paying around $15 for a pint at their local,” he said in a statement.

Taxes on spirits have risen by about 4 per cent too (between $3.30 and $3.63).

The hikes to beer and spirit taxes are the biggest in two decades because they’re calculated based on the inflation rate, which is now at the highest level since 2001.

But exactly how much more consumers will have to pay will depend on how businesses pass on the hikes and on the alcohol content of their favourite beers or spirits.

That’s because excise rates are split up by alcohol strength and container size.

The changes are summarised in the below table.

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