Albanese government to freeze beer excise for first time in 40 years

The Albanese Government is seeking to put a hold on increases to the beer excise for the first time in 40 years.

The Customs Tariff Amendment (Draught Beer) Bill 2025 seeks to pause the indexation of customs duty rates for draught beer for two years from August 1, 2025.

Currently, the beer excise is indexed twice yearly to stay in line with the consumer price index, with Australian beer, wine, and spirit importers and producers saddled with some of the highest rates in the world.

Those costs are either passed onto consumers or put pressure on venues, industry advocates have warned.

Addressing the House of Representatives, Anthony Albanese said he was “proud” to introduce the Bill, “one of the most popular commitments that we took to the election”.

If passed, it would be the first freeze in 40 years, the Prime Minister said.

“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 Prime Minister spruiked the small breweries of his own electorate in Sydney’s inner west, the so-called “ale trail”, as well as food trucks and food small businesses that had been established in response.

“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,” he said.

“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.”

The Bill passed its third reading on Wednesday after several amendments were knocked back.

Among those was an amendment by Nationals MP Pat Conaghan moved to include spirits in the excise freeze.

“Why should Australians who prefer spirits be singled out to keep paying tax increases while beer drinkers get a break?” he asked.

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

He said 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.

The amendment was voted down 23 to 81 despite finding support from Liberal MPs, including Andrew Hastie, Tony Pasin, and Ben Small.

Speaking on the Bill, Liberal MP Anne Webster said it should “go further”.

“I do note the Prime Minister’s comments that as people around Australia raise a glass in a pub, the price won’t go up for the next two years,” she said.

“Well, if it was only dependent on this excise freezing, that would be one thing, but we know that wages have gone up. We know that electricity has gone up. We know that the cost of living continues to rise under this government.”

For families looking for a cheap meal, it was “no longer cheap”, Ms Webster said.

“When I take my family out, I can assure you, Speaker, it costs me well over 100 and something dollars, sometimes $200 just to go to a pub meal,” she said.

“So to pretend that this excise freeze for the next two years is going to solve all the problems is complete and utter rubbish, and every Australian knows it.”

Assistant Treasurer Daniel Mulino warned the amendments, including from Mr Conaghan and New England MP Barnaby Joyce, were while “well intentioned, they would significantly broaden the measure beyond its intended scope”.

“They’re uncosted and would create substantial fiscal impacts,” he said.

“We all love a celebration, but we’re a responsible government, one that is focused on the cost of living but in a targeted and responsible way. The Bill, as drafted, strikes the right balance between supporting our pubs and clubs while maintaining budget sustainability.”

Mr Mulino noted separate support in the 2025-26 budget for all beer and spirit manufacturers.

Amendments put forward by Warringah MP Zali Steggall and Kooyong MP Monique Ryan, among others, were voted down by a majority of MPs.

Additional amendments put forward by Mr Conaghan, including to compel the federal government to conduct a review of the tax by November 2026, were also shot down.