The Australian Government has announced a freeze on beer excise for the next two years, drawing praise from the beer industry and outrage from the spirits industry.

The freeze will start with the next scheduled rise in August and follows the Australian Government’s announcement last week that it will provide tax relief for Australia’s distillers, brewers and wine producers, including an increase to the excise remission cap and Wine Equalisation Tax producer rebate.

Prime Minister Albanese said the move would take pressure off the price of a beer poured in pubs, clubs and other venues, supporting businesses, regional tourism and customers across Australia.

“My Government is building Australia’s future and to do that we need to support our small and medium local businesses to thrive,” Albanese said.

“Freezing the excise on draught beer is a common sense measure that is good for beer drinkers, good for brewers and good for pubs.”

Australian Hotels Association national chief executive Stephen Ferguson said: “We’re concerned about a drop in the number of people being able to go to the pub and enjoy a beer, have a meal and be entertained. This is a great first step in just giving everyone a break.”

Ferguson told the ABC the tax freeze would help hotels maintain staff during a cost of living crisis that has meant more Australians are staying home to save money.

“This freeze will be quite minor in terms of cost, but also what the government said is they are willing to consult over the next period on how the excise works,” he said.

“We recognise the need for the government to raise revenue from liquor excise, but we also need to make sure that the current settings are not discouraging socialising in safe licensed venues.”

Lion said the freeze on excise on draught beer sold in hospitality venues would bring welcome relief for Aussie beer drinkers, pubs and clubs

“This is a great first step – and we’ll continue making the case along with others in industry during this much-needed period of relief for a permanent change to Australia’s beer tax system, which is damaging pubs and clubs and unfairly punishing responsible beer drinkers,” the brewer said.

Spirits discrimination slammed

Spirits & Cocktails Australia said the freeze on draught beer excise discriminates against spirits producers, drinkers and the entire distilling supply chain.

Spirits & Cocktails Australia chief executive Greg Holland said there was no policy rationale to support a freeze on draught beer alone.

“The tax on spirits is already three times higher than it is on beer. Freezing draught beer excise alone is discriminatory in every sense – it favours beer drinkers over spirit drinkers, brewers over distillers, and pubs over bars,” he said.

 Holland said the Government has effectively ignored the spirits industry’s calls for sensible alcohol tax reform.

“These recommendations were supported by a bipartisan parliamentary committee in its recent report on the food and beverage manufacturing inquiry,” he said

“Yet the Government has baulked at the alcohol tax reform it knows is desperately needed by the 700 distilleries operating across Australia, 50% of them in regional areas.”

Australian Distillers Association chief executive Paul McLeay said: “This policy has put a dampener on last week’s announcement of a $50,000 increase to the remission.

“We’ve spent the past year advocating for the industry’s opportunities for growth, including our potential to become a $1 billion export industry within the decade.

“The Government has so far overlooked this economic opportunity, so we hope there are further policy announcements that will enable us to realise this potential.”

Bundy fan fury

In January, Bundaberg Rum relaunched its campaign letting consumers across Queensland and NSW know that they are currently paying a whopping 63% tax on a $61.50 1L bottle of Bundaberg Rum UP.

As part of this campaign Bundaberg Rum has also published a petition inviting spirits drinkers to add their name and send emails to the Prime Minister, the Treasurer, the Opposition Leader, the Shadow Treasurer and the Leader of the Nationals asking them to freeze the tax.

In the last 24 hours alone, more than 4500 Bundy drinkers have signed the petition calling on Canberra to freeze Australia’s spirits tax.

Chair of the Bundaberg Distilling Co. Amanda Lampe said: “We’re disappointed with this announcement. They’ve left every Bundy drinker in the cold with no relief in sight. They will continue to see the tax on their favourite drink go up.

“Thousands of Aussies have emailed Canberra and they deserve some action. We are calling on all sides of politics to also freeze this infinity tax on Australia’s spirits drinkers.

“Australia’s spirits tax is seven times higher than the United States, and significantly higher than the $61.21 New Zealanders pay in tax on spirits, it’s time Bundy drinkers and spirits drinkers in Australia got a fair go.”

Pictured main: PM Anthony Albanese raised a glass at The Bob Hawke Beer & Leisure Centre following his win in 2022.