As the Australian Government prepares to freeze the draught beer excise for two years, from August 1, the spirits industry is calling for the same relief.

They have labelled the new, two-tiered tax system as unfair, with spirits drinkers being hit with alcohol tax rises while those ordering beer will get a reprieve.

Under a decades-old system, the tax on spirits rises every February and August in line with the Consumer Price Index (CPI).

A draught schooner, pot or pint will be spared from the increase for the first time from August 2025 to help pubs, clubs and their customers.

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

Treasurer Jim Chalmers said the government remained focused on easing the cost of living for Australians.

“This will help take a bit of pressure off beer drinkers, brewers and bars,’’ he said.

“Whether it’s a tax cut for every taxpayer, help with energy bills, or the new relief that’s rolling out this month like higher wages for award workers, we’re doing everything we responsibly can to help with the cost of living.”

However, Australia’s spirits industry said people who prefer an RTD, cocktail or mixed drink shouldn’t be discriminated against.

According to industry body Spirits & Cocktails Australia, freezing the excise on spirits would double down on existing support for pubs, clubs and bars. Venues increasingly rely on spirits-based drinks alongside the beer taps, so extending excise relief to spirits makes just as much sense for publicans as consumers.

Australia’s punitive spirits taxation regime means consumers pay one of the highest tax rates in the world for spirits and RTDs. The tax on spirits is already $104.31 per litre of alcohol before next month’s excise increase.

Australian Distillers Association general manager Cameron Mackenzie said: “This tax hurts our customers and more than 700 distillers across the country who want to share more of our products at Aussie pubs and clubs.

“We want a system that doesn’t favour one drink over another.

“Australia is home to globally-renowned distilleries that are exactly the kind of modern manufacturing Australia needs more of — not less — to boost productivity. Helping to ease the burden of these twice-yearly tax hikes that act as a handbrake on industry, and punish our consumers, should be a priority.”

Night Time Industries Association CEO Mick Gibb said: “Our members support the two-year tax freeze the federal government has applied to draught beer from August, but this relief should be extended to spirits and RTDs served in
licensed venues too

“Australia hosts a vibrant night-time economy enjoyed by people from all walks of life. This relief should extend to everyone, no matter their drink preference.”

A spokesperson for Spirits and Cocktails Australia said: “We support the freeze in place for draught beer. What we are asking for is for the federal government to recognise that this tax relief should go to anyone approaching the bar, no matter what they drink, whether it be a schooner of beer, a gin and tonic or a premix RTD.

“We are seeing cocktails and RTDs becoming more and more popular in pubs and clubs across the country and we should ensure those customers aren’t left out when the freeze on beer comes into effect in August.”