A tax cut on tap beer expected in Tuesday’s federal budget faces growing criticism as a new report says the policy will do little to help the struggling hospitality sector and unfairly benefits men.
Brewers and pubs have campaigned for a 50 per cent reduction in the federal excise on beer poured at the bar to help revive the pandemic-hit hospitality sector. The plan has significant support among Coalition backbenchers.
An expected cut to beer excise has been labelled a “gender-biased subsidy”. Credit:Rob Homer
But a report by the progressive Australia Institute think tank says any cut to tap beer excise would represent “a gender-biased subsidy” and an inefficient and inequitable way to aid the post-COVID recovery of the hospitality sector.
Bureau of Statistics figures show only 17 per cent of regular beer drinkers are women, so even if some or all of the tax relief is passed on to consumers, it is unlikely to encourage many females back to hospitality venues.
“The policy aims only at one small part of the sector, brewers of tap beer and pubs that sell it, and in turn puts the rest industry at a comparative disadvantage while targeting only a relatively small subset of consumers that least needs the encouragement to drink more,” the report says.
Previous stimulus policies adopted by the Morrison government during the pandemic have been criticised for benefitting men more than women including funding for major infrastructure projects which favour the male-dominated engineering and construction sectors.
The Australia Institute report estimates a 50 per cent cut to excise on tap beer will cost the federal budget $190 million next financial year and almost $1 billion over five years. An earlier estimate by the Australian Hotels Association put the cost at $153 million in 2022-23.
The report says the money would be better spent on targeted assistance for small restaurants and bars, support for live music, or food and drink discounts for all customers. The majority of workers in accommodation and food services, which includes pubs, taverns, bars and clubs, are women.
“Proposals to reduce the excise payable on beer have the potential to deliver a significant loss of Commonwealth revenue, but little potential to create jobs, stimulate the hospitality sector or address problematic drinking,” the report says.
Expected beer tax cut would be ineffective and ‘gender biased’: report
Source: Philippines Alive
