Zac Standish
Pubs and clubs in the Latrobe Valley could be set for a significant boost, with the Brewers Association of Australia calling for a reduction in tax paid on beer.
The hospitality sector was decimated in 2020, with the devastation of the COVID-19 pandemic still heavily impacting establishments as they try to recover.
Brewers Association of Australia chief executive officer John Preston details exactly what they are proposing and the impact this will have on hospitality venues across Australia.
“We are calling for a 50 per cent reduction in the rate that is supplied to draught beer,” Mr Preston said.
“The average small to medium sized pub they would get in about 15 kegs a week, so for them halving the current tax would reduce what they pay by around $500.
“Obviously last year was a really bad year, with the (Latrobe) Valley area in particular experiencing a significant drop in tourism, so this would really help in giving them some relief and allow them to rebuild by encouraging more customers to come in the doors.”
One local pub that was significantly impacted by the events of 2020 was the Grand Junction Hotel in Traralgon.
Hotel licensee Annette Vogt told The Express this proposed tax cut would be critical for the Latrobe Valley’s hospitality sector.
“The 50 per cent reduction in the rate of draught beer would be a massive boost for the hospitality business owners in the Latrobe Valley,” she said.
“Due to COVID and the lockdown period and having no income along with the end of JobKeeper, this would support the hospitality sector and having to cope with aspects such as capacity restrictions this would definitely help.”
Mrs Vogt speaks of the overall impact the pandemic had on business at the hotel, and how this proposed cut would help them rebuild.
“We had just finished doing massive renovations so that was very hard having to then close for eight months,” she said.
“A 50 per cent reduction would be a lot, it would certainly help now without the JobKeeper and having not traded for so long last year it would have a substantial impact on how we run the business.”
This tax reduction would give pubs and clubs right across the country greater flexibility in maintaining staff, with Mr Preston saying that was one of the main motivations behind the campaign.
“A lot of pubs had to lay off staff during the pandemic just to survive,” he said.
“So I think a projected $500 drop in their tax bill each week that is probably enough to bring someone back on or put on an extra person in need of work following the pandemic.”
A crucial cog to towns in the Latrobe Valley, a successful recovery for pubs such as the Grand Junction Hotel is vital for the community as a whole.
“We offer quite a lot of different aspects in hospitality, we have the meals, a great sports and plenty of other great attractions,” Mrs Vogt said.
“We sponsor a lot of local sporting clubs and we love getting involved in that side of the community, so having these reductions would be a massive boost in helping us give back in this way.
“Country towns they love the country pubs and being a family owned business it is sort of like a family here and a place where the community can come together.”
In terms of a government response, Mr Preston is positive a successful outcome can be reached following an influx of positive feedback.
“We have had a really positive response, the hospitality sector is obviously really keen for it so I think everyone is really getting behind it,” he said.
