The Australian Hotels Association (AHA), Clubs Australia and Independent Brewers Association (IBA) have welcomed the Labor Government’s announcement that it will freeze the excise on draught beer for at least the next two years.
The Government said the freeze will take the pressure off the price of a beer poured in pubs, clubs, bars and other venues across the country. The announcement comes on top of new tax relief announced last week for Australia’s distillers, brewers and wine producers.
Prime Minister Anthony Albanese said: “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.”
AHA CEO Stephen Ferguson welcomed the announcement, describing it as a win for those Australians who like to enjoy a beer in their local pub.
“There’s no better place to have a beer than down at the local pub – they are the hubs of their communities – we employ more than 300,000 people and a tax freeze helps support these jobs,” Ferguson said.
“It’s a win for common-sense in the middle of a cost-of-living crisis – every little bit makes a difference.
“It’s great to see the Albanese Government has listened and acted on this unpopular hidden tax.”
The IBA also welcomed the announcement as a step in the right direction, saying that the association has been advocating for a freeze on all beer for many years.
IBA CEO, Kylie Lethbridge said: “The commitment to freeze the tax on draught from August 2025, coupled with the proposed increase the remissions cap by $50,000 from 1 July 2026 are both steps in the right direction, as is the opportunity for consultation and open dialogue.
“We, of course 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.
“It is clear that Prime Minister Albanese is looking to find ways to provide relief and we thank him for that – but at the same time, look forward to a commitment to more meaningful change to our unfair alcohol tax regime and initiatives that would support Australian-owned small brewing businesses.”
Clubs Australia Executive Director Rebecca Riant, added: “In the midst of a cost-of-living crisis, this is great news for the hospitality industry and the millions of Australians who enjoy a few refreshing beers at their local club.
“The fact that the excise freeze only applies to draught beer poured in venues is a great incentive for people to get out and enjoy time with friends and family in the comfortable surrounds of a registered club.
“Today’s announcement also reflects that a supervised environment such as a registered club, with strong responsible service of alcohol duties, is a safe and vibrant setting to enjoy a beer.”
However not all industry associations have welcomed the freeze, with Spirits & Cocktails Australia saying the freeze discriminates against spirits producers.