How the increased beer tax is affecting university venues and students

The Federal Government has increased Australia’s beer tax, raising concern for University bars, restaurants and students. 

A month on from the new beer tax taking affect the impact is being felt in the cash registers of bars on campus. 

On Monday August 5 the Australian beer tax was lifted. Beer drinkers are now paying an extra dollar for a pint. Some venues across Perth are now charging as much as $18 for a single pint, a pint at the Curtin Tav usually cost between $9 and $13.50, with the Happy Hour price set at $7.

Curtin University venues have said they are struggling due to inflation in the industry. 

Beer prices have increased by 10.5 per cent since the beginning of 2022, according to industry statistics.

A Consumer Pulse Report generated by CGA, demonstrated that 43 per cent of consumers have been going out less often due to price increases and the cost of living crisis. 

Curtin University’s venue Milky Lane, which charges $10 for a pint, said there has been a significant change in customers since the recent tax increase.

A representative said August’s tax increase has affected sales as menus across Australia within the industry must adjust to cover the higher tax, although increasing prices can deter patrons from returning.

“We have had to increase prices to help alleviate the extra costs the taxes have taken,” he said. 

The expense of alcohol products have been rising continuously over the decades, this forces venues to sell goods at lower margins, and encourages them to also sell other products to increase revenue. 

The representative added: “The cost of living crisis has affected many businesses. Patrons are less inclined to go out and spend.” 

Night Time Industries Association chief executive Mick Gibb said venues are being forced to pass the recent cost onto customers for the sake of their businesses’ survival. 

Brewers Association chief executive John Preston said: “This tax has gone up twice a year for over 30 years.” He added that Australia now holds the position of third place in the world’s in the category of highest beer tax. 

Curtin University student Diego Silva Pizza said he is disappointed in the rise of beer prices due to the living crisis already in action: “It just makes it hard to enjoy a nice casual drink with your friends.”

He said the price increase would decrease his alcoholic purchasing power as students needed to be conscious of their spending. While he is currently a regular at Curtin’s venues, he won’t keep on going for a casual drink if the prices continue to lift. 

Looking to the future Curtin’s venues are getting creative. This can include having what is called ‘loss leader’ items (such as happy hour pints) that are intentionally priced as low as possible to bring patrons in. The idea is they make money from the other sales. 

Incorporating special events and deals also helps venues bring heads in, according to the representative for Milky Lane.