Albanese makes major decision in support of draught beer brewers

The prime minister has thrown a lifeline to publicans suffering under the weight of increasing costs to sell beer.

Anthony Albanese will freeze beer taxes for the next two years in a shameless pitch to voters ahead of an election that is tipped to be called within the next fortnight.

The Prime Minister has confirmed “we will freeze the indexation on draught beer excise for two years” on Friday night, in what he described as a win for beer drinkers, brewers 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.

The amount of alcohol excise charged for beer and spirits increases twice a year, in February and August, in line with inflation.

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

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.

Albo will freeze the indexation on draught beer excise. Picture: NewsWire/Martin Ollman

Federal Treasurer Jim Chalmers supported the freeze. Picture: NewsWire/Martin Ollman

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.

The Treasurer insisted when excise went up this month it would only affect the price of a schooner by a few cents, so the freeze also isn’t likely to deliver much more relief than that.

The Prime Minister is now tipped to call the election after the WA poll which will occur on March 8. In doing so, he would avoid the March 25 budget and head straight to the polls on April 12.

Treasurer Jim Chalmers said the change was “modest” but they hoped it would make a differe

The prime minister has thrown a lifeline to publicans suffering under the weight of increasing costs to sell beer.

nce.

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

The beer tax freeze will come into effect from the next indexation date, August 2025. The Prime Minister is tipped to call the election for April 12.

Labor changes its tune on beer taxes ahead of election

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.

“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.

David Littleproud (pictured with former PM Malcolm Turnbull) faced backlash last year from senior Liberals after floating the prospect of a beer tax relief. Pictures: Jack Tran

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.

“Beer and spirits excise is a dripping tap which delivers $6.2 billion of drinkers’ money to Canberra already – and is budgeted to go up another $800 million by 2027.

“That’s money out of people’s pockets who can’t afford it. Everyone knows a dripping tap should be turned off. That’s what we want to see, a fair go for the men and women who enjoy a beer or gin and tonic at their local pub – not a hidden tax designed to increase by small amounts that goes up twice a year.

“Only David Littleproud and the Nationals are willing to back the voter here – Labor and Liberals alike need to listen and freeze this hidden tax on beer and spirits sold in pubs, clubs and restaurants.

But he might have to update that press release after the PM’s Friday night beer freeze.

Originally published as Albanese makes major decision in support of draught beer brewers