Tamworth pubs and New England breweries hit with tax hike on beer

The federal tax on beer will rise by 3.7 per cent from Wednesday, February 1.

How much tax is slapped on a beer is adjusted twice a year based on the movement of the consumer price index, which jumped 7.8 per cent to December 2022.

Post Office Hotel licensee Andrew Coutts held back from pushing prices up during the previous tax rise. Last time, the pub absorbed the increase, but prices will rise for the customer over two increases of 7.8% in total.

"Where's the roof?" Mr Coutts said.

"Where do you go to in regards to pricing and beer in regards to the customer?"

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Mr Coutts said there are "serious" taxes on other forms of alcohol, but when it comes to beer, the tax rises are "too frequent".

New England Brewing Co will also be putting up costs for some items, such as a pale ale carton wholesale, which has not had a price hike in 12 months.

It can be tricky for small breweries to pass costs on, especially if products are already expensive, co owner and brewer Ben Rylands said.

"Say you're selling cartons for $69.99, breaking into the $70 mark is a bit scary for instance," he said.

While headlines about a $12 schooner are scary, he said, it's tough when indexing policies only work in a low inflation environment.

"Coming out of COVID, I feel for people that are balking at going and having a few beers," he said.

"We're seeing from our own brewery door people are still drinking at home or socialising at home more than going out.

"And price is part of that."

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