Coalition and Labor go head-to-head on tax free beer policy

Everything is going up — but maybe not your beer. Anthony Albanese and Peter Dutton have both promised to freeze the tax on your schooner for the next two years.

The Coalition has revealed they will match Labor’s promise to freeze the tax on beer for the next two years after floating the idea for months.

The excise on beer will be frozen for the next two years after a 10 per cent rise since 2022, under the latest populist policy from the Albanese government.

Schooners cost up to $15 in some venues in Sydney, with Australia the third-highest taxed beer-producing nation in the world.

The day before his birthday, Anthony Albanese announced the policy at the Bob Hawke Beer and Leisure Centre in his electorate of Grayndler while sipping on his “first beer of the year”.

“This will make a difference. It is a positive announcement. As I said, good for beer drinkers, good for pubs and clubs, good for cost of living pressures,” he said.

Mr Albanese said if pubs chose to increase the price of beer, “then no one can blame the Government, because we’re freezing that cost for two years.”

Hours later, Coalition treasury spokesman Angus Taylor said an elected Peter Dutton government would also freeze tax.

“The government has chosen the eve of an election to promise voters a freeze on a tax that has skyrocketed due to its failure to address inflation at its core,” Mr Taylor said.

The opposition said they had been in discussions over this policy “for a long time and given it serious consideration”.

The cost of beer has been spiralling along with inflation for the past two years, with indexation applied twice a year.

Prime Minister Anthony Albanese enjoys a beer while watching the Rabbitohs. Picture: Damian Shaw

The announcement comes after the Coalition spent months dithering on the policy they were on the precipice of announcing at the 2022 election under Scott Morrison.

In January, Deputy Liberal leader Sussan Ley left the door open to the Coalition reviewing the beer excise, saying they were “looking at everything when it comes to tax”.

“It’s all in scope and we’re in an election year, and people can expect not just on that matter, but on everything to hear quite a lot more from us,” Ms Ley said.

There has been a growing split in the Coalition over the issue, with Nationals leader David Littleproud dismissed by senior Liberals, including Treasury spokesman Angus Taylor, in September when he announced the policy was one the coalition was considering.

The tax on beer will be frozen for the next two years.

The average price paid for a schooner of beer at a venue in Australia has increased by 6.2 per cent in the past 12 months, and since the start of 2022 beer prices have gone up by 10.5 per cent, according to the Independent Brewers Association.

About 21 per cent of the price of a full-strength six-pack goes straight to tax.

Treasurer Jim Chalmers said the increase was modest but would make a difference.

“This is a modest change but will help take a little bit of the pressure off beer drinkers, brewers and bars.”

It’s the latest addition to Labor’s poll pitch to the alcohol industry after they committed to tax relief for brewers and distillers.

Currently the industry got a full refund for any excise paid up to $350,000 each year but the Albanese government has committed to bumping that up to $400,000.