Australians are set to enjoy cheaper beer as legislation to freeze the biannual tax hike was introduced to parliament today.
Under the current decades-old system, an indexation is applied to the beer excise in February and August each year in line with inflation.
But the continued increases have brought up the prices of a schooner or pint to about $15, prompting calls from brewers, bars and patrons to put a pause to the controversial indexation.
Prime Minister Anthony Albanese campaigned for this year’s federal election on the promise to freeze the indexation on the excise for two years starting from August.
He also said he would increase the excise remission cap to $400,000 for manufacturers and increase the wine equalisation tax producer rebate cap to $400,000 from July 1 next year.
At the time, he said this was a “common sense measure” that was a win for drinkers, pubs and brewers.
Treasurer Jim Chalmers touted the freeze as a “modest change” that would take the pressure off the industry and Australians.
The changes come as Australia’s monthly spend on wine and beer jumped this year compared to 2024, according to June data by CanstarBlue.
The monthly spend for beer rose by 30 per cent from $76 to $99 while wine rose by 17 per cent from $66 to $77.
Meanwhile, the average price of beer increased by 4.5 per cent in the 12 months to March.
The rising costs have also taken a toll on the industry, which saw dozens of breweries and pubs shut down shop from last year.
Industry bodies, which have long been campaigning for a freeze, welcomed the government following through on its election promise.
Brewers Association of Australia chief executive Amanda Watson welcomed the news, saying the nation’s beer excise is the third-highest in the world.
“This excise freeze is great news for Australia’s pubs, clubs and beer drinkers and is a positive signal from government in terms of getting on with the job of delivering on pre-election commitments,” she said.
Watson, however, added that she would continue working for future excise reform.
Australian Hotels Association National President David Canny said the legislation prevented beer from becoming a “luxury item”.
“It’s a win for common sense in the middle of a cost-of-living crisis,” he said.
