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<\/p>\nThe Australian Government delivered on an election promise by freezing draught beer excise indexation from 1 August 2025, offering immediate relief to pubs and brewers.\u00a0<\/p>\n
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From 1 August 2025, the government paused the twice\u2011yearly inflation adjustment on draught beer excise until August\u202f2027. The measure is expected to cost around AUD\u202f$95\u202fmillion over four years and was introduced to support roughly 300,000 hospitality jobs.<\/p>\n
Brewers welcome move but want more<\/p>\n
The Independent Brewers Association<\/a> called the freeze \u201ca modest step in the right direction\u201d after 84 successive excise increases, noting that 48\u202fper cent of independent breweries still struggle with profitability.<\/p>\n Spirits industry left out<\/p>\n Distillers criticised the policy for favouring beer drinkers over spirit and cocktail consumers. The Australian Distillers Association reported that spirits remain taxed at AUD\u202f104.31 per litre of alcohol, rising with each CPI adjustment, which it says distorts competition and raises bar prices.<\/p>\n Calls for broader reform<\/p>\n Hospitality and distilling groups continue to push for tax parity across alcohol categories, warning that without reform, consumers will face higher costs for spirits and RTDs while only draught beer venues benefit.<\/p>\n Early trade reports suggest pubs are passing on some savings to consumers, with beer prices rising more slowly than expected this month. However, spirits and cocktail venues are forecasting higher menu prices as their excise continues to climb.<\/p>\n Next steps for alcohol tax policy<\/p>\n The government has committed to consulting with industry ahead of its next budget cycle. Both brewers and distillers are expected to lobby for a more consistent approach to alcohol taxation, with some analysts predicting tax parity will remain a key political issue into 2026.<\/p>\n Related news<\/p>\n \n \n
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