Beer: Australia's economic tonic
9 April 2018
NEW research has brought to a head Australian beer's contribution to the national economy, as well as its state-by-state importance, from grain to glass.
The economic analysis by ACIL Allen Consulting for the Brewers Association of Australia shows that 95% of all beer sold in Australia is made locally, that its production supports over 143,000 Australian jobs (more than 105,000 full-time equivalent) and generates $16.9 billion a year in economic activity to account for 1.02% of GDP.
"Instinctively, Australians know beer is a part of our national lifeblood. It's a major ingredient in what brings families, friends, colleagues and entire communities together. But it is also a vital lubricant for our economy at national, state and local levels," Brewers CEO Brett Heffernan said.
"Beer alone, independent of its flow-on effects through the broader economy, supports 14,297 full-time Australian jobs in its direct supply chain and generates $6.2 billion in economic activity each year.
"When you add in the jobs and economic inputs beer drives across agriculture (primarily barley and hops); the broader supply chain, including manufacturing, packaging and transport sectors; through to pubs, clubs, cafes, restaurants and retailers; beer production in Australia generates a massive 105,148 full-time equivalent jobs and $16.9 billion a year to the economy.
"For every direct full-time equivalent job making beer in an Australian brewery (3,954), a further 26.6 jobs are created elsewhere in the economy.
"Every Australian schooner of beer sold in pubs and other licensed premises contributes $6.24 to GDP, while its off-license equivalent in packaged liquor store beer sales contributes $2.73 to GDP.
"The complete 2015-16 data on beer and taxes is also compelling. Australian beer drinkers poured almost $3.8 billion into government coffers – that's $2 billion in excise and $1.78 billion in GST. Australian Government tax is the single biggest ingredient in the cost of a beer.
"Over 9.1 million Aussies celebrate with a beer. Who knew that Aussie beer is, itself, worth celebrating? It's a huge supplier of local jobs. It's a major economic driver and revenue raiser for government. It's also the spice of life, so enjoy in moderation, secure in the knowledge you're doing your country a favour."
Please note: the data for 2015-16 is the most recent full-year results for Australian beer production, consumption and taxation. The 2016-17 full dataset will be available later in 2018.
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