With the election just around the corner, Prime Minister Albanese has made a promise that’s sure to put a smile on the faces of beer enthusiasts across the country.
He’s vowed to freeze taxes on beers poured at pubs for the next two years, which could save you up to $2 per pint.
How Will the Tax Freeze Work?
The plan is to freeze the indexation on draught beer excise for 24 months, starting from August 2025.
This means that the tax on beer, which currently increases twice a year in line with inflation, will be put on hold.
The freeze will only kick in if the Albanese Government is re-elected, and the federal election must be called by May 17.
Why Is the Tax Freeze Needed?
The tax on beer can add up quickly, and publicans have no choice but to pass the cost on to customers.
In fact, this month’s tax increase added $0.17 to the price of a litre of beer, making it $43.39 per litre.
By freezing the tax, the Government hopes to take pressure off the price of a beer and support businesses, regional tourism, and customers.
What Do the Politicians Say?
Prime Minister Albanese says that the move is a “common sense measure” that will help small and medium local businesses thrive.
“My Government is building Australia’s future, and to do that, we need to support our local businesses,” he said.
Treasurer Jim Chalmers admits that the pause is a “modest change”, but it will help take some pressure off beer drinkers, brewers, and bars.
What’s Behind the Announcement?
The timing of the announcement is no coincidence, with speculation rife that the election will be called soon. This move is seen as a populist attempt to win over voters and put them in a good mood.
It’s likely that the Opposition will also back the policy to minimize its impact.
What’s Next?
The announcement comes on top of new tax relief for Australia’s distillers, brewers, and wine producers, which was announced last week.
With the election looming, it’s clear that the Government is pulling out all the stops to win over voters. Will this beer tax freeze be enough to sway your vote? Let us know in the comments!