From the President

Beer Excise: The Time is Now

DAVID BASHEER – AHA|SA PRESIDENT

DAVID SPEAKS ABOUT BEER EXCISE AND GREG FAHEY, WATCH VIDEO: https://youtu.be/g75AqjHk2pA

Ahead of the upcoming Federal election, the AHA continues to put pressure on all sides of politics for a 50% reduction on beer excise.

The Federal Government says it promises lower taxes and that it wants Australians to keep more of the money we earn

Despite that, it quietly keeps increasing the tax on draught beer each and every six months.

• Australians pay the 4th highest beer tax in the world. And by next year, we climb up to the 3rd highest in the year when we overtake Japan.

• On a standard keg, we pay $70 in tax directly back to the Government. We need that reduced to $35 per keg.

• That drop represents a mere 2% of the massive $7 billion a year the Government collects in alcohol taxes.

• Halving this hidden tax would see a drop in a pint of beer at our pubs by as much as 30 cents.

The reasons we are actively campaigning for this cut are simple.

After more than two years of COVID-19 strain - unlike aviation, building and travel agents - the Federal Government still has not produced a policy aimed directly for the benefit of our members.

Now is the time for change. Our on-premise has been smashed.

Every beer poured into a glass creates jobs. We know it is the onpremise component of our business that is the most labour intensive. It is unfair a product that generates such a high degree of employment is so heavily taxed. It is a tax that hits our operators, our staff who pour the product, and our customers who enjoy it.

Beer underpins the trade of our pubs, with beer accounting for 70% of our alcohol sales.

AHA family-owned businesses provide places for people to socialise and create hospitality employment.

So the next time your local member or candidate walks into your pub, ask them:

• Do they support Australia having the fourth highest beer tax in the world?

• Do they support your customers paying an extra 30 cents on every pint because of their tax policies?

• Is it right for the Government to put up the price of beer through its taxation measures each and every six months?

• Do they support a policy that supports a tax on jobs for people serving beers?

Some of our friends in the health sector have already got a bit excited over the prospect of cheaper beer. They either don’t understand the concept - or are choosing to ignore it – that it is only for beers poured at the pub, not takeaway liquor that accounts for around 80% of all liquor sales in this country.

And not every pleasure in life should be taxed out of its very existence.

Mental health remains significant in our community. This has been magnified by the uncertainty and in many cases, loneliness of the pandemic.

Do not ignore the power of mates gathering at the pub for a catch up. Mates talking to mates regularly has got to be a good result. Robin Dunbar, an Oxford University Academic professor no less, found people who visit their local pub regularly are not only better socially engaged but those visits also leads to better mental health outcomes.

And closer to home, Dr Peter Jonason from the University of Western Sydney, in his research paper titled ‘The psychological value of having a local in Australia’, found after 260 hours of fieldwork and surveying 1200 random participants people who regularly go to their local are:

• More trusting and satisfied with life

• Have broader friendship networks

• It was the place men had more meaningful conversations with other males

• And 94% of people in a pub talked to other people each visit, rather than being isolated and spending time alone.

Australians are struggling with increased costs of living. They don’t need this growing hidden tax hike to make things worse. Enough is enough – after 72 tax rises on beer in 36 years, it is time to give us a fair go. Cut the draught beer tax!

NATIONAL AWARDS

South Australia cleaned up at the recent AHA National Awards for Excellence in Hobart.

The event attracted a record crowd in excess of 500 guests from across the country, with hospitality taking the lead signalling this country is now open for business!

We provided seven winners, including two of the most prestigious awards on offer.

Congratulations to the Stirling Hotel, Watervale Hotel and Duke of Brunswick on their National recognition, along with individual awards won by Heath Johansen (Uraidla Hotel) and Chris Speck (Mt Lofty House). In a stunning achievement, the Bridgeport Hotel, the inspiration of Ian Tregoning and Graham Hobbs was awarded Overall Hotel of the Year for Regional Australia. The venue is a showpiece for South Australian hotels and a tribute to not just Ian and Graham, but to Darren Steele and all his team.

The most prestigious individual award our Association Australiawide can deliver is the Johnnie Walker Hall of Fame. It was an honour to be present to see Greg Fahey inducted this year.

This award is not delivered lightly. It acknowledges Greg as undoubtedly one of the most influential hoteliers in the nation.

Greg is a former AHA|SA Vice President, a former national AHA board member, a board member for the Independent Gaming Corporation and critically, one of the driving forces behind the critical SA Manco deal in 1994 which saw 120 SA Brewery owned freehold assets transferred to their tenants. So many of our family businesses today owe this deal everything.

But he is best known as the successful figure behind more than 20 hotels in a 50-year career. As comfortable talking to the Premier as he is the tradie, Greg’s engaging personality is custom made for our industry.

Countless charitable and sporting organisations have relied on Greg’s generosity over many years.

Like so many industry achievements, it is a family affair. All the time, Judy has been by his side in an endearing personal and business partnership, and now his three adult children carry the baton. Jason and Trent both serve on the AHA|SA Council.

Greg Fahey is a hospitality treasure and we are proud to count him as one of our own.