Prime Minister Anthony Albanese has fulfilled his election campaign promise to freeze the indexation of draught beer taxes for two years.
This decision has been met with mixed reactions from stakeholders, with some hailing it as a step in the right direction and others criticising it for being unfair to other categories.
The freeze will come into effect from the upcoming 4 August indexation and will mean that the excise on draught beer will not increase in line with CPI inflation for the following two years up to August 2027.
The General Manager of the Australian Distillers Association, Cameron Mackenzie, has expressed his support for the freeze, stating that it’s a tax that “hurts our customers and more than 700 distillers across the country” and that they want “a system that doesn’t favour one drink over another.”
Mick Gibb, CEO of the Night Time Industries Association, has also welcomed the freeze but has called for it to be extended to spirits and RTDs served in licensed venues as well.
Reactions from Industry Leaders
National President of the Australian Hotels Association, David Canny, has thanked the Prime Minister, describing the freeze as “a win for common-sense in the middle of a cost-of-living crisis.”
CEO of the Independent Brewers Association, Kylie Lethbridge, has also expressed her support for the policy, despite it being of greater benefit to larger beer suppliers with greater tap presence nationwide.
She commended the Labor Government on its promise to lift the excise-free threshold for craft distillers and brewers from $350,000 to $400,000, which will come into effect from July next year.
Cameron Mackenzie has also spoken out about the unfair policy settings, stating that they are limiting the potential of Australian spirits.