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MPs vote to freeze beer tax

Australian Parliament resumed debate this week on a beer tax freeze, with the Excise Tariff Amendment (Draught Beer) Bill 2025 passing its third reading on Wednesday.

Several suggested amendments were defeated, including the spirits industry’s call to extend the freeze to spirits served on tap in pubs and clubs, which was supported by the Nationals.

Nationals MP Pat Conaghan said: “Why should Australians who prefer spirits be singled out to keep paying tax increases while beer drinkers get a break?

“The government has decided one drink deserves a relief from tax hikes and the other doesn’t.”

He argued that lighter spirits and mixed drinks were more often consumed by women and young people, who would not benefit from the excise freeze.

“This government likes to pretend it’s a friend to women and younger Australians, but clearly not if you don’t prefer beer,” he said.

However, his suggested amendment was voted down 23 to 81.

The Australian Tax Office raised the excise duty on spirits this week, up from $105.98 per litre to $107.99 per litre.

Barnaby Joyce also spoke during the debate, calling for the complete removal of alcohol excise on drinks sold for consumption in hospitality venues.

“In so many regional areas, the issue surrounding the excise is closely related to the viability of local hotels,” Joyce said.

“In a local area such as Walcha Road or right out west in Thargomindah, if you didn’t have a hotel you’d have nothing at all.

“In the past in a lot of country towns we used to have post offices. They were closed. We used to have train stations. They were closed,” he said.

“Many medical facilities are not there, and the one thing that’s sort of been maintained is the local hotel. But now we are seeing a rolling closure of hotels.

“If we lose our hotels in Australia, if we lose our little regional pubs, then we will be diminished as a nation.

“A freeze on the excise which is exorbitant is not enough. The excise has to be removed if you want your local small town pub to survive.”

Despite his lengthy contribution to the debate, Joyce did not follow the procedural steps required to have his amendment formally moved and considered by the House. As a result, the proposal was not debated or voted on.

This version of the bill will now be considered by the Senate. If it is passed it will be presented to the Governor-General for assent, leading to a two-year freeze on draft beer tax from August 2025.

Prime Minister Anthony Albanese said it would be the first freeze in 40 years.

“Forty years is a long time between drinks, Mr Speaker, but it is just one of the rounds of cost-of-living measures that our government has taken,” he said.

“The capacity of people together at their local pub or at their local club, RSL is so important because there’s that sense of belonging.

“Overwhelmingly, as well, they’re family businesses. They run by putting in long hours every day. They also employ locals, and for so many people, whether they be full-time but, importantly as well, part-time workers.

“It’s a way of people getting through their university days or just working part time for people when they’re raising a family as well.

“So good for our economy, good for our jobs, good for our local community as well.”

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