Beer boosts Australian economy

Posted by Andrea Hogan on 11th April 2018

Beer generates $16.9 billion a year to the Australian economy and accounts for just over one per cent of GDP new research has found.

In a new report into the economics of beer conducted by CIL Allen Consulting for the Brewers Association of Australia, it was also found that 95 per cent of all beer sold in Australia is made locally.

Production of beer supports over 143, 00 Australian jobs (more than 105, 00 full-time equivalent).

Brewers Association of Australia Chief Executive Officer, Brett Heffernan, said many Australians believe beer plays a role in Australian culture, but some are not aware of how much the beverage contributes to the economy.

“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 generate $6.2 billion in economic activity each year,” Heffernan said.

“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.”


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