The Australian government has announced a two-year freeze on draught beer excise adjustments, a move it describes as a win for consumers, brewers, and the hospitality sector.
In a statement on Saturday, March 1, the government confirmed that the indexation freeze would take effect from August 2025, aiming to ease price pressures in pubs, clubs, and other venues. Officials say the measure will support businesses, boost regional tourism, and provide financial relief to customers across the country.
Prime Minister Anthony Albanese called the decision “a common-sense measure that is good for beer drinkers, good for brewers, and good for pubs.” Treasurer Jim Chalmers acknowledged the tax relief as “modest” but noted that it would “help take a little bit of the pressure off beer drinkers, brewers, and bars.”
Despite the praise from the beer industry, the spirits sector has expressed concerns. Greg Holland, chief executive of Spirits & Cocktails Australia, criticized the move as “discriminatory in every sense,” arguing that it unfairly favors beer drinkers over spirits consumers, brewers over distillers, and pubs over bars.
The announcement follows recent government measures aimed at supporting the alcohol industry, including tax relief for brewers, distillers, and wine producers. Currently, eligible brewers and distillers receive full excise remissions of up to A$350,000 (US$218,060) annually. Under the new policy, this cap will rise to A$400,000 starting July 1, 2026. Similarly, the Wine Equalisation Tax (WET) producer rebate will increase to A$400,000.
However, not all industry leaders are satisfied. Paul McLeay, chief executive of the Australian Distillers Association, called the beer tax freeze “disappointing,” arguing that it dampens the impact of last week’s A$50,000 increase in the excise remission.
“We have spent the past year advocating for the industry’s opportunities for growth, including our potential to become a A$1 billion export industry within the decade,” McLeay said. “The government has so far overlooked this economic opportunity, so we hope there are further policy announcements that will enable us to realise this potential.”
The Australian drinks industry has long lobbied for tax reforms. In August, brewers and distillers urged the government to address rising costs after a 2% increase in alcohol excise duty led to higher prices for beer and spirits.
The decision to freeze draught beer tax adjustments is expected to provide relief to the beer industry while intensifying calls for broader tax reform across the alcohol sector.
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