Brewing accounts for one per cent of Australia’s GDP

13 April, 2018 by Andy Young

By Charles Whitting, Editor, Beer & Brewer

New research has revealed the importance of Australian beer to the national economy.

Advertisement

Economic analysis from ACIL Allen Consulting for the Brewers Association of Australia has shown that 95% of all beer sold in Australia is brewed in Australia. Its production supports over 143,000 Australian jobs – more than 105,000 of which are full-time equivalent – and generates $16.9bn a year in economic activity, accounting for 1.02% of GDP.

Beer production and supply provides 14,297 full-time jobs in Australia, generating $6.2bn in economic activity per annum. In addition, Australian-brewed beer provides 62,322 jobs from on-licence retailing and 28,530 from off-licence retailing.

The geographical split shows that the industry is important across the entire country. Brewing in New South Wales supports the most full-time jobs (30,735), while brewing in Queensland provides the most economic activity (c. $4.9bn).

“Instinctively, Australians know beer is a part of our national lifeblood,” comments Brett Heffernan, Brewers Association CEO. “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.

“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 $3.8bn into government coffers – that’s $2bn in excise and $1.78bn in GST. Australian government tax is the single biggest ingredient in the cost of a beer.

“Over 9.1m 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.”