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Coalition matches Labor pledge to keep beer tax on ice

Labor will freeze the excise on beer for two years – but what does that mean for a glass of amber? (Joel Carrett/AAP PHOTOS)

By Andrew Brown and Poppy Johnston in Canberra

Beer drinkers, brewers and the hospitality sector can expect the beer excise to stay on hold temporarily no matter who wins the federal election.

The opposition has mirrored the Albanese government’s pledge to pause indexation levels on draught beer for two years, aimed at courting schooner-loving voters.

Shadow Treasurer Angus Taylor confirmed the coalition would back the “modest relief” for hospitality businesses caused by “Labor’s homegrown inflation”.

“This is a band-aid on a bullet wound,” Mr Taylor told reporters on Saturday.

Drinks covered by the excise are taxed per litre of alcohol at a rate adjusted every six months in line with the consumer price index.

Australia and much of the world have experienced a bout of high inflation, which has pushed up the excise rate.

The beer excise ranges from $10 to $43 per litre, depending on the amount per container and the alcohol content.

Prime Minister Anthony Albanese billed the excise freeze as a win for beer drinkers, brewers and the hospitality sector.

Asked if this meant just a couple of cents off the price of a schooner – which usually measures 425ml – Mr Albanese said “everything makes a difference”.

“This is something that has been requested for a long time by the hoteliers, clubs and by small operations,” he said while standing inside the Bob Hawke Beer and Leisure Centre in Marrickville in the heart of his electorate of Grayndler.

“What this does very clearly… is send a message to beer drinkers that for two years there is a freeze on excise.”

Any increase in the price of a schooner over the next two years could not be blamed on the government, he added.

Saturday’s pledge was welcomed by the hospitality sector, with Clubs Australia executive director Rebecca Riant pointing out the excise had increased 83 times since it was introduced in 1983.

“(This was) making the price of a schooner increasingly hard to swallow,” she said.

According to the Australian Hotels Association, the nation’s beer tax is the third highest of all the country members of the Organisation for Economic Co-operation and Development.

Association CEO Stephen Ferguson acknowledges the government needs to raise revenue.

“But the current tax settings with excise going up every six months are keeping people at home – drinking alone rather than getting out and socialising in safe, local venues,” he said.

While applauded by many industry figures, spirits have been left out of the excise change.

Bundaberg Distilling Co chair Amanda Lampe was disappointed.

“They’ve left every Bundy drinker in the cold with no relief in sight,” she said.

The measures come off the back of tax relief for brewers, distillers and wine producers.

The government recently announced it would increase the amount refunded to the alcohol producers from $350,000 to $400,000.

Mr Albanese could call the election within the next two weeks.

While the poll must be held on or by May 17, it’s been widely tipped voters could head to the ballot box some time in April.

The latest YouGov poll shows the coalition ahead of Labor on a two-party preferred basis, leading 51 per cent to 49 per cent.

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2 Responses to Coalition matches Labor pledge to keep beer tax on ice

Bulldog says: 1 March 2025 at 4:33 pm

The election hasn’t been called and the government isnt in caretaker mode, so they can make the change right now

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David says: 2 March 2025 at 8:09 am

Labor think tank, “let’s do something with beer, how do we promise nothing make it sound like something and get a picture of Albo holding a beer? Ok, we can’t give too much away so how about 1 cent. Yep, why don’t we freeze the excise, freeze goes well with cold beer, which gets applied because of inflation. We all know we’re responsible for the higher inflation so we’re just countering the damage we’ve done but they don’t need to know that. i.e. we’re just giving back what we’ve taken away so they get nothing. This plan is excellent. Is there anything else we could possible work on that’s affecting the lives of Australians that may be more important ….. not that I can think of, I’ll drink to that.”

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