‘Can’t blame us’: Albo freezes beer tax

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During a press conference in Marrickville, the Prime Minister started spruiking the new policy.

When asked about local businesses jacking up their prices above the rate of inflation, Mr Albanese said beer drinkers can't blame the government.

"The government receives occasional comments from a wide range of people that we don't necessarily agree with," he said.

“What this does very clearly is send a message to beer drinkers that there's a freeze on the beer industry.”

“If prices go up, no one can say it’s the government’s fault because we’re capping costs for two years.”

From August 2025, the biannual alcohol excise that's charged to brewers and distillers will be put on hold for draught beer, which is beer served from a keg or cask, meaning it's only likely to bring down the cost of a schooner or pint poured in a pub, bar or restaurant, while distillers and brewers who want to sell bottled or tinned beer will miss out.

The excise was bumped up again on February 4 this year, marking the 84th time this has happened, with a rise of 0.4% or 1.004 times the previous rate.

The excise on beer, however, is calculated based on the beer's alcohol content and its final volume, whereas the excise on spirits rose from $103.89 per liter of pure alcohol to $104.31.

The Prime Minister said the cost-of-living package will help out brewers, regional tourist operators and venues, which have been doing it tough due to rising inflation, and people struggling with cost-of-living pressures.

“My government is building Australia's future and to achieve this, we need to give our small and medium-sized local businesses the support they need to succeed,” Mr Albanese said.

“Freezin' the excise on draught beer is a fair dinkum move that's good for tinnie enthusiasts, good for breweries and good for pubs.”

Jim Chalmers said that while the excise freeze will be a "modest change", it'll "help take a little bit of the pressure off beer drinkers, brewers and bars".

The chief executive of the Australian Hotels Association, Stephen Ferguson, requested the Coalition's support for the freeze as well.

While Liberal Party frontbenchers have been reluctant to back the policy, Nationals Leader David Littleproud has previously supported a hold on the excise.

"There's no better spot to have a beer than down at the local pub – they're the heart of their communities – we employ over 300,000 people and a tax break will help keep these jobs secure," he said.

It's a win for common sense in the middle of a cost-of-living crisis – every little bit counts.

“We'd love to see the Liberal Party come on board now to make sure a beer at the pub isn't a rip-off.”

The parent company behind well-known beer brands such as XXXX, Tooheys, and Stone and Wood, Lion Australia has also "wholeheartedly" welcomed the news, with managing director James Brindley saying he'll continue to advocate for a bigger increase in the excise.

“It’s time to shift away from the current approach that's hurting Australia's pubs and clubs and unfairly penalising responsible Australian beer drinkers,” he said.

However, the freeze on beer excise hasn't been welcomed by all, with Spirits & Cocktails Australia saying it "discriminates" against spirit producers and drinkers.

"The tax on spirits is already three times higher than it is on beer. The freeze on beer excise is unfair in every way – it gives beer drinkers an advantage over spirit drinkers, brewers an advantage over distillers, and pubs an advantage over bars," Chief executive Greg Holland said.

In late January, on the eve of the February excise increase, Mr Chalmers wrote to the consumer watchdog, asking them to make sure drinkers aren't "ripped off or lied to" about the small excise rise.

He asked ACCC chair Gina Cass-Gottlieb to keep an eye on prices to make sure retailers and venues aren't using the excise hike as a excuse for higher prices. He pointed out that the changes would lead to a 1 to 2 cent increase on most beers, with a 24-pack of 375ml mid-strength beers going up by about 5 cents.

“We're stepping up to defend beer drinkers by making sure they're not getting a raw deal or being misled about this tiny change,” Mr Chalmers said back then.

We've written to the competition watchdog to ensure pubs aren't ripping off their customers by claiming the government is responsible for any substantial price hikes.

In recent days, Labor has also increased the cap on excise remission for eligible brewers and distillers to $400,000, which means they get a full refund on excises paid up to that amount.

From 1st of July next year, the Wine Equalisation Tax producer rebate cap will also go up to $400,000, from $350,000.

The fee is calculated at 29 per cent of the wholesale value of the wine and is paid by the manufacturers, wholesalers, and importers.