Federal tax reprieve for beer drinkers

Man pouring a beer. | Newsreel
The excise tax on beer will be frozen from August. | Photo: Frazao Studio Latino (iStock)

The tax payable on beer poured in a pub will not rise for two years.

The Federal Government has announced it would freeze the annual indexation on draught beer from August 2025.

Prime Minister Anthony Albanese said indexation was applied twice a year under arrangements in place for decades.

“While the February indexation accounted for a small percentage of the cost of a pint, this change will help pubs and their patrons,” Prime Minister Albanese said.

“This will take pressure off the price of a beer poured in pubs, clubs and other venues, supporting businesses, regional tourism and customers across Australia.”

He said the Government would consult with the sector on the implementation of this measure.

“This announcement comes on top of new tax relief announced last week for Australia’s distillers, brewers and wine producers.”

Prime Minister Albanese said currently brewers and distillers received a full remission of any excise paid up to $350,000 each year.

“We will increase the excise remission cap to $400,000 for all eligible alcohol manufacturers and we will also increase the Wine Equalisation Tax producer rebate cap to $400,000 from July 1. 2026.”