One Nation has announced it supports scrapping the excise tax on beer and spirits served in pubs, with the aim of easing costs for consumers and boosting Australia’s hospitality industry. 

Party leader Pauline Hanson said rising cost-of-living pressures were driving Australians away from pubs and restaurants, with One Nation seeking to reinvigorate local businesses and encourage social engagement.

One Nation Senator Malcolm Roberts has launched on a 3000km outback pub drive to promote One Nation policies including removing the alcohol tax on drinks sold in licensed venues.

“In many outback towns, the pubs are in danger of becoming extinct, with the cost of overheads forcing them to shut their doors,” Roberts said.

‘One Nation’s pub drive will shine a light on struggling towns that most politicians will never visit their entire time in parliament.

“The outback and the bush are often silent victims of government policies. More than most communities, the outback feels increases to the cost of transport yet politicians in Canberra often do not hear these voices crying out for acknowledgment of the pain Canberra is inflicting.

“Outback pubs are often the hub for the entire community, acting as much more than just a watering hole. One Nation wants to give venues a shot in the arm to keep their doors open as a place to see your mates.”

Australian Government provides tax relief for drinks industry

The Australian Government announced on Saturday that it would provide tax relief for Australia’s distillers, brewers and wine producers.

Currently brewers and distillers get a full refund of any excise paid up to $350,000 each year. The Government said it will increase the excise remission cap to $400,000 for all eligible alcohol manufacturers. It will also increase the Wine Equalisation Tax (WET) producer rebate to $400,000.

In addition to the tax relief, the Australian Trade and Investment Commission (Austrade) will provide Australian distillers, brewers and wine producers with additional support to help them grow their exports in high priority overseas markets.

This support includes the opportunity to join in trade missions, expert advice and connections to help small and medium size exporters tap into fast growing markets, including in Southeast Asia and beyond.

The tax relief is estimated to decrease tax receipts by $70 million over five years from 2024-25.

No relief for drinkers in new policy

The Australian Hotels Association said the Australian Government’s announcement would provide tax relief for brewers, distillers and wine producers, but would do little for anyone struggling to afford a drink at a pub.

AHA National CEO Stephen Ferguson said that while brewers, distillers and wine producers would benefit from having their excise rebate increased “unfortunately, that benefit is likely to be absorbed by those businesses with little benefit, if any, flowing on to consumers”.

“Consumers will still be faced with the Government’s twice-yearly excise increases, with pubs being forced to pass the tax increase on to consumers,” h e said.

“The 84th increase is still due on 1 August this year. Excise is a lazy, hidden tax and Australians continue to pay the third highest excise in the world. Pubs have no control over excise and are stuck in the middle having to pass the tax on to ordinary Australians.”

The AHA said it maintained its call for a freeze excise for beverages sold in licenced premises such as pubs, clubs bars and restaurants.

Drinks industry reacts to tax relief announcement