The Australian government has announced a freeze on the excise tax for draught beer, a move aimed at alleviating the financial pressures faced by consumers and businesses in the hospitality industry. The freeze, which will take effect from August 2025, comes as part of a broader package of relief measures for Australia’s distillers, brewers, and wine producers.
Prime Minister Anthony Albanese emphasized the government’s commitment to supporting small and medium-sized local businesses, stating, “My Government is building Australia’s future, and to do that we need to support our small and medium local businesses to thrive. Freezing the excise on draught beer is a common-sense measure that is good for beer drinkers, good for brewers, and good for pubs.”
The announcement was met with a positive response from industry leaders. Australian Hotels Association (AHA) CEO Stephen Ferguson praised the move, calling it a win for both beer drinkers and pub owners. “There’s no better place to have a beer than down at the local pub – they are the hubs of their communities,” Ferguson said. He also highlighted the importance of the tax freeze in supporting jobs, with over 300,000 Australians employed in the pub industry. “It’s a win for common-sense in the middle of a cost-of-living crisis – every little bit makes a difference,” he added.
The Independent Brewers Association (IBA) also welcomed the government’s action, viewing the freeze as a step toward greater support for the brewing sector. IBA CEO Kylie Lethbridge noted that while the freeze on draught beer and the proposed increase in remission caps from 1 July 2026 were positive developments, more immediate and broader reforms were needed. “We wish that these were more immediate and applied to all beer, as we know they will not be enough to prevent some of the smallest independent breweries from closing,” Lethbridge stated.
Lethbridge expressed gratitude for Prime Minister Albanese’s efforts to provide relief but called for further commitment to reform the country’s alcohol tax regime to better support Australian-owned small brewing businesses.
Meanwhile, Clubs Australia Executive Director Rebecca Riant applauded the freeze, noting its positive impact on the hospitality industry. “This is great news for the hospitality industry and the millions of Australians who enjoy a few refreshing beers at their local club,” Riant said. She emphasized the value of local clubs as safe, vibrant environments for socializing, which the tax freeze aims to support.
Despite the broad support, the freeze has not been universally embraced. Spirits & Cocktails Australia expressed concern, arguing that the measure unfairly favors beer over spirits and discriminates against spirits producers.
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