PM will honour a big election promise as he moves to tackle cost of living

Anthony Albanese will table a proposal on Thursday to stop beer taxes from rising to help with the cost of living.

Anthony Albanese will move to freeze beer taxes on Thursday honouring his election pitch to tackle the cost of living.

The Prime Minister confirmed during the election that “we will freeze the indexation on draught beer excise for two years” in what he described as a win for beer drinkers and hospitality businesses.

With schooners and pints tracking closer to $15 and $20 in major cities, publicans have expressed fears the steep prices are driving customers away.

It follows warnings that a half of the cost of a $59.99 slab of Coopers Pale Ale was going to the taxman.

Prime Minister Anthony Albanese will move to freeze beer taxes on Thursday. Picture: Mark Stewart / NewsWire

On Thursday, the Albanese Labor Government will table tariff proposals to stop the excise and customs duty on beer from increasing from 1 August.

The Albanese government has confirmed it will amend the legislation to temporarily pause the indexation on excise and customs duty.

The pause on indexation for excise and customs duty will be in place for two years from 1 August 2025.

The Albanese Government said that the excise and customs tariff proposals tabled in Parliament will be ratified by primary legislation to be introduced in coming months.

However, the tariff proposal on Thursday will stop the price of beer increasing due to indexation until that freeze is legislated.

“Continuing to deliver cost of living relief to Australians is our number one priority,’’ Mr Albanese told news.com.au.

“Freezing the excise on draught beer is a common sense measure that is good for beer drinkers, good for brewers and good for pubs.”

Treasurer Jim Chalmers said the government remained focused on easing the cost of living for Australians.

“This will help take a bit of pressure off beer drinkers, brewers and bars,’’ he said.

“Whether it’s a tax cut for every taxpayer, help with energy bills, or the new relief that’s rolling out this month like higher wages for award workers, we’re doing everything we responsibly can to help with the cost of living.”

News.com.au understands the cost to the budget in tax revenue foregone will be $95 million over four years. But it’s not all beer.

Only beers coming off tap in a licensed hospitality venue are included in the tax freeze. Picture: Brendan Radke

The PM is keeping his election promise to freeze the beer tax. Picture: Jason Edwards / NewsWire

It needs to be coming off tap in a licensed hospitality venue, so only schooners and pints of beer from your local watering hole will be blessed with a tax freeze.

Those who prefer buying their beer, or any other alcohol, from the bottle-O can expect prices to keep rising.

Last year Anthony Albanese said cutting beer taxes wasn’t a priority for his government.

“We are not looking at that at the moment, but obviously in the lead-up to budgets, you have submissions and I’m sure that there’ll be submissions along a whole range of ways,” he told 3AW.

“One of the things that we have to do though, is look at ways where we provide cost of living support, while putting downward pressure on inflation.”

Health Minister Mark Butler was singing the same tune back then, insisting that the government’s focus was on “cheaper medicines, not beer”.

Nationals leader’s lonely call for action

David Littleproud faced a backlash last year from senior Liberals after floating the prospect of a beer tax relief because the price was “hitting a tipping point.”

“I’m part of the shadow expenditure review committee and our final taxation policy has not been determined,” he said.

Australia’s beer tax is one of the highest in the OECD.

“That will be determined by the National Party and the Liberal Party. That’s why we’ll be running the ruler over this.

“When we determine the taxation policy we’ll take to the next election, it’ll be a Coalition policy.”

But the big idea was slammed down by the opposition treasury spokesman Angus Taylor.

“The starting point to reducing the pressure of indexation is to get inflation down,” Mr Taylor said.

Opposition finance spokeswoman Jane Hume also wasn’t a big fan.

“I always like the idea of free beer. But, unfortunately, that might not be the policy slogan that you’ll be seeing us going into the election with,” she said.

Hotels Association call for action

Ahead of the announcement, the Australian Hotels Association CEO Stephen Ferguson noted that beer and spirits tax quietly goes up twice a year every year and complained that the Government’s only response is to refer pubs to the Australian Competition and Consumer Commission.

“Australia’s beer tax is already the third highest in the OECD. There’s also $38 tax on a $60 bottle of whisky or gin. That is outrageous and the voters are awake to it,’’ Mr Ferguson said.