The Federal Labor Government will freeze indexation on draught beer for two years commencing in August 2025 if re-elected, which a local brewery has labelled a ‘partial victory’.
In a statement on March 1, Prime Minister Anthony Albanese called the move “a common-sense measure” and a “win” for beer drinkers, brewers, and hospitality businesses.
Smiley Brewery Co, owner and director, Trent Butcher believes the two year freeze is a “partial victory” rather than a win for the entire industry.
“The key with this announcement is it only affects draught beer. When 85 per cent of the taps in the country are controlled by the Kirin & Asahi, they are reaping the benefit.”
“The price of a pint at the pub isn’t going to change, it’s just not going to go up for a couple of years. There’s also a feeling that in 2 years, the freeze comes off and we are back in the same situation again.”
Another uncertainty is that it will only go into effect if the Labor Government is successful in the next election— “that’s a big if”, Trent said.
The two-year freeze on draught beer excise is unlikely to “improve” or “change” the competitiveness of the Australian brewing industry.
“Beer isn’t going to go down at the pub, while the punter may get some short term relief it’s only that, short, meanwhile packed beer continues to go up effecting the market where most craft breweries have some sales.”
The alcohol excise on beer and spirits rises twice a year, in February and August.
While currently, brewers and distillers get a full remission of any excise paid up to $350,000 each year.
The Federal Government announced they will increase the excise cap to $400,000 for all eligible alcohol manufacturers and also increase the Wine Equalisation Tax producer rebate cap to $400,000 from July 1 2026.
