A proposed 50 per cent tax cut on draught beer could do more harm than good

Recent reports about the cut had beer lovers rejoicing, while others have labelled it a "sexist" tax cut for blokes.

But for some, the idea of making alcohol cheaper ignores a big health issue.

The manager at Calvary Riverina Drug and Alcohol Service Brendan McCorry, based in Wagga Wagga in NSW's Riverina said the price of alcohol was going the wrong way in this instance.

"If we increase the price of alcohol, it actually has a significant impact, not only on consumption, but has a flow on of reducing all the negative stuff of people consuming alcohol," he said.

He said research showed that increasing the price of alcohol had a positive effect on a community's health and wellbeing, especially among young people, and that any tax cut on alcohol was poorly timed after two years of lockdowns.

"It needs to be a health issue," he said. "And if we're looking at the current climate in COVID, it is part of everyone's health and wellbeing. Whether we drink or not, we're always at risk of being impacted by somebody else's drinking."

Wagga Wagga-based Romano's Hotel publican Mathew Oates said it was unlikely a tax cut on beer would be passed on to the punters. Australia is currently the fourth-highest taxed country in the world for beer, he said, and as the pandemic has squeezed pubs nationwide, it is likely some publicans will absorb any savings on a keg.

"It will bring the price down for us, roughly 5 to 10 per cent, depending on the beer," he said. "At our three hotels we haven't had a price rise in line with the price rises in excise since midway through last year, so we've absorbed the last two price rises."

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Sober in the Country Ltd founder and CEO Shanna Whan, from Maules Creek, on NSW's North West Slopes, wants to see a "fair and balanced approach from our leaders". If a cut to the cost of beer can be made, then more money could also go towards alcohol harm prevention.

''We lose 6000 lives every year to alcohol. The statistics don't lie. And what we are doing is not enough. So I urge our leaders to think about the big picture here," she said

Mr McCorry has seen an increase in people coming through his doors with alcohol-related issues, and he believes that the government should move towards a uniform tax on alcohol.

"The use of alcohol changed due to being at home ... we are seeing lots of people who have been presenting whose alcohol problems only seem to have become significant with COVID," he said. "Reducing the cost will make it more available.

"I would encourage the government to introduce a volumetric tax."