The Australian government has announced plans to
Currently, Australia’s alcohol excise duty increases every six months in line with inflation. This means the tax on beer, which has been rising steadily, is one of the highest in the world. The freeze will apply only to keg beer (generally 48 liters or more) sold at hospitality venues, excluding packaged beer sold in bottles or cans. Treasury analysis suggests that without the freeze, beer tax would have risen again in August.
For pub owners and brewers, the decision offers some relief from rising operational costs. Many have been lobbying for an outright cut to beer tax, arguing that Australia’s excise system disproportionately affects draught beer, making it harder for hospitality venues to stay competitive. While the government’s measure prevents further increases, critics argue it does little to address the overall affordability of beer, particularly as energy prices, wages, and supply chain costs continue to climb.
Consumer groups have also questioned the impact of the tax freeze. With inflation pushing up prices across all sectors, a saving of less than one cent per pint is unlikely to make a noticeable difference for everyday Australians. Some industry experts argue that broader tax reform is needed to genuinely reduce the price of beer and support pubs and clubs struggling post-pandemic.
Labor’s move follows similar actions in other countries, such as the UK, where beer duty cuts were introduced to support hospitality businesses. However, unlike the UK, where significant cuts were made, Australia’s approach is more conservative, focusing on stopping further increases rather than reducing existing rates.
Ultimately, while the government is framing the beer tax freeze as a win for consumers and the hospitality industry, the reality is that drinkers are unlikely to see a meaningful difference in their pub bills. The debate over Australia’s alcohol tax system is likely to continue, with pressure mounting for deeper reforms to support both businesses and consumers.
