Tax on beer increased by more than $2 a litre (up four per cent), from $53.59 per litre of alcohol to $55.73, while tax on cartons has risen by 80 cents to $18.80 tax on the cost of a keg jumped by $4, raising the cost to almost $74.

Stephen Hunt, director of Hunt Hospitality (The Imperial, Maitland), said he thinks the sharp increase could have been handled better.

"There could have been smaller increments, and to be doing this at such a time when interest the RBA is jacking up the interest rates, I think it's kind of a double edged sword," he said.

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"It's really, really going to impact not only on our businesses, but it's also going to impact on the general public.

"The trickle down effect of putting the prices up on us is devastating for the community because it not only affects us, but it means less will be sold, so that means less suppliers make money. The couriers and the freight guys make less money, and that flows all the way down to people who sell glassware."

Mr Hunt said each business will respond to the tax hike differently, with smaller businesses likely looking at increasing prices.

"It'll come down to each individual business - businesses that are struggling will probably have to put their prices up so they can maintain some profit, and some of these bigger businesses won't because they can wear a bit of a decrease in profitability," he said.

"It's something that we're putting a lot of consideration into, and we're certainly looking at changing promotions and activities within the venues to encourage people to come back in and have a good time."

Brewers Association of Australia (BAA) chief executive John Preston said we have seen almost 20 increases in Australia's beer tax over the past decade alone.

"For a small pub, club or other venue the latest tax hike will mean an increase of more than $2700 a year in their tax bill - at a time when they are still struggling to deal with the ongoing impacts of the pandemic," Mr Preston said.

Beer tax goes up twice a year - on February 1 and August 1 - and the BAA is calling on the Anthony Albanese Government to cut the "hidden beer tax" before the next deadline.

"Brewers and pub and club operators were extremely disappointed the former government did not deliver on a proposed reduction in beer tax at this year's March Budget," Mr Preston said.

"Our call was a 50 per cent tax cut to the draught beer rate."

"This is a problem that the new Treasurer has inherited from his predecessors and there are many competing demands on the Budget. Nonetheless, we believe there is a strong case for beer tax relief to be provided by the new federal government."

Treasurer Jim Chalmers told ACM he will always listen to any ideas to stem price rises.

"Having inherited a trillion dollars in debt, and with lots of other pressures on the Budget, it's not possible to fund every one of them," he said.

- with NADINE MORTON