Australia freezes draught beer tax hike in bid to support pubs and breweries
With a general election looming, the Australian government has announced a two-year freeze on excise tax increases for draught beer. The move aims to ease cost pressures on hospitality businesses and consumers while providing relief to brewers battling inflation-driven price hikes. The post Australia freezes draught beer tax hike in bid to support pubs and breweries appeared first on The Drinks Business.
With a general election looming, the Australian government has announced a two-year freeze on excise tax increases for draught beer. The move aims to ease cost pressures on hospitality businesses and consumers while providing relief to brewers battling inflation-driven price hikes.
The Australian government will halt excise tax increases on draught beer for two years, according to a recent Reuters report, offering a temporary reprieve to pubs, clubs, and breweries struggling with rising costs. The tax freeze, set to take effect in August, comes as Prime Minister Anthony Albanese’s centre-left Labor government faces declining public support ahead of a general election due by May 2025.
Announcing the decision at a Sydney brewery, Albanese underscored the cultural importance of pubs in Australian society. “Part of who we are as Australians is going to the pub,” he said, emphasising that industry stakeholders had long been calling for this tax relief.
Australia currently imposes automatic, inflation-linked excise increases on alcohol twice a year, contributing to some of the highest beer prices globally. While the government argues that these taxes help control alcohol-related harm, the hospitality sector has criticised them for driving up costs and discouraging on-premise consumption.
The freeze applies specifically to draught beer sold in pubs and clubs, rather than packaged beer sold in retail stores. Hospitality industry representatives have welcomed the announcement, viewing it as a necessary step to sustain struggling businesses still recovering from the effects of the pandemic and inflation.
Despite beer’s deep-rooted role in Australian social life, researchers predict a long-term decline in alcohol consumption due to health awareness and economic pressures. While the tax freeze provides short-term relief, it remains to be seen whether it will translate into long-term benefits for the industry—or serve as a strategic move to bolster voter support in the lead-up to the election.
The Australian government will halt excise tax increases on draught beer for two years, according to a recent Reuters report, offering a temporary reprieve to pubs, clubs, and breweries struggling with rising costs. The tax freeze, set to take effect in August, comes as Prime Minister Anthony Albanese’s centre-left Labor government faces declining public support ahead of a general election due by May 2025.
Announcing the decision at a Sydney brewery, Albanese underscored the cultural importance of pubs in Australian society. “Part of who we are as Australians is going to the pub,” he said, emphasising that industry stakeholders had long been calling for this tax relief.
Australia currently imposes automatic, inflation-linked excise increases on alcohol twice a year, contributing to some of the highest beer prices globally. While the government argues that these taxes help control alcohol-related harm, the hospitality sector has criticised them for driving up costs and discouraging on-premise consumption.
The freeze applies specifically to draught beer sold in pubs and clubs, rather than packaged beer sold in retail stores. Hospitality industry representatives have welcomed the announcement, viewing it as a necessary step to sustain struggling businesses still recovering from the effects of the pandemic and inflation.
Despite beer’s deep-rooted role in Australian social life, researchers predict a long-term decline in alcohol consumption due to health awareness and economic pressures. While the tax freeze provides short-term relief, it remains to be seen whether it will translate into long-term benefits for the industry—or serve as a strategic move to bolster voter support in the lead-up to the election. 
