Suggested Beer Tax Cut Slammed As "Gender-Biased-Subsidy"

A tax cut on beer is expected to be introduced in Tuesday’s federal budget has been meet with criticism with a report indicating that the move will “unfairly” benefit men and is unlikely to improve the hospitality sector. 

Australian brewers have been pushing for a 50 percent tax cut on tap beer claiming it will help to boost the struggling hospitality industry. 

The policy, which has the support of a number of coalition backbenchers, has been slammed with the Australia Institute think tank publishing a report claiming the tax cut would demonstrate “a gender-biased subsidy”.

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According to the Bureau of Statistics, 17 percent of beer drinkers are female which means the tax cut would only benefit a small number of women and would unlikely be enough to urge women to spend more money on food and beverage.

The report by the Australian Institute said the tax cut would only serve to benefit a small number of people.

“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 states.

The report also indicates that the tax cut will cost the Federal Government around $190 million across the next financial year and around $1 billion over a five-year period.

The Australian Institute suggest spending the money on a broader array of discounts for customers across food and beverage as well as support for live music and smaller bars and restaurants.

“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 states.

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