MEDIA RELEASE: Clubs New Zealand calls on the Government to review Alcohol Excise Tax Increase

1 June 2023

The recent announcement that the Government will be introducing the second-largest alcohol excise tax increase in 30 years is another blow to the not-for-profit club sector. The increase of 6.65% follows on from the record 6.92% increase last year and could not come at a worse time with clubs already facing massive cost increases driven by inflation and regulatory change.

"Clubs New Zealand has written to the Government asking them to urgently review the Alcohol Excise Tax increase, says Chief Executive, Larry Graham.

"The breweries, which supply our clubs have already indicated that the increased excise tax will be passed onto hospitality businesses and clubs. Given the current operating environment there is no way that not-for-profit clubs will be able to absorb those increases and they will be passed to the consumer.

"The majority of members who frequent our clubs are on fixed incomes, a significant number are retirees or ex-service and have worked hard all their lives. They visit the club for connection and recreational pursuits. We know that soon there will be members who are unable to afford a pint of beer.

"We have seen time and time again that there are novel solutions that the Government is willing to employ i.e., the reduction in petrol excise.

"Cost increases as a result of the increased Alcohol Excise Tax are likely to be the tipping point for many clubs and the wider hospitality industry. We are urging the Government not to sit back and watch this unfold, but to act with urgency to ensure that our clubs are not forced to endure another blow."

ENDS

For media enquiries, contact: larry@clubsnz.com

Clubs New Zealand National Office 0800 425 827

www.clubsnz.org.nz

Clubs New Zealand Incorporated (Clubs New Zealand) is a not-for-profit, member led association representing more than 300 clubs around the country including Community Clubs, Cosmopolitan Clubs, Workingmen’s Club, Sports Clubs, and Returned Servicemen’s Associations (RSAs).  Collectively our clubs employ more than 3,000 people and are a home away from home to over 300,000 club members.  To find out more visit www.clubsnz.org.nz