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Beer costs could rise from today as tax hike hits, and industry calls for reprieve

Tony Fyfe co-owns the Hemmingway Brewery in Cairns and wants federal beer taxes slashed. (ABC Far North: Phil Staley)

A brewery owner in far north Queensland has joined pub, club and industry representatives in calling on the federal government to slash beer taxes, after a tumultuous two years of COVID lockdowns and restrictions. 

The Australian Hotels Association, Clubs Australia and the Brewers Association have launched a national campaign to cut the twice-yearly tax hike on draught beer, which comes into effect today.

"Twice a year for 35 years pubs and drinkers have copped a tax hike on draught beer," Queensland Hotels Association chief executive Bernie Hogan said.

"This year — after our members have done the right thing throughout the pandemic and at a time when jobs and businesses hang in the balance — we ask that pubs and drinkers get a break."

The organisations are pushing for the tax levy on beer kegs to be slashed in half, from $70 to $35.

They say Australia has the fourth-highest tax on beer in the world, behind Norway, Finland and Japan.

Hemmingway's Brewery in Cairns has been hit hard by the COVID-19 pandemic. (ABC Far North: Phil Staley)

Brewery owner says 'give us a break'

Tony Fyfe, co-owner of Hemmingway's Brewery in Cairns, supports the campaign to slash federal beer taxes, saying a reduction could help the struggling hospitality industry after two years of COVID-19 restrictions and lock-downs.

The cost of draught beer could rise, as a tax on beer comes into effect from today. (ABC News)

"Over the last two years, we've done the right thing, followed the government mandates, closed down when we had to and operated under really difficult restrictions.

Brewers Association of Australia chief executive John Preston said a 50 per cent cut in draught beer tax would reduce the federal government's revenue from alcohol tax by only $150 million a year, or around 5 per cent of total beer taxes collected.

He said today's beer hike could be passed on to consumers.

"Australian beer drinkers will cop the biggest beer tax increase in more than a decade — it's not right and it's not sustainable," Mr Preston said.

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