With a Federal election looming, the incumbent Albanese administration has begun wooing the battlers, promising a freeze on the unpopular tax on beer for at least two years.
If re-elected, the Albanese Government has mandated the temporary halt on increases to the excise on beer, but only on beers poured in licensed venues.
This is the first time the tax has been reviewed in more than 40 years, and Australian Hotels Association CEO Stephen Ferguson credits Anthony Albanese as the first PM to take action.
“It’s a win for common-sense in the middle of a cost-of-living crisis – every little bit makes a difference.
“It’s great to see the Albanese Government has listened and acted on this unpopular hidden tax.”
Furthering the political motive, the AHA notes the fact that pubs employ more than 300K people, and that tax relief helps support these jobs. The Association acknowledges the need for government to raise revenue and suggests pubs are “willing to do our fair share” of the work.
“But the current tax settings with excise going up every six months are keeping people at home – drinking alone, rather than getting out and socialising in safe, local venues.”
Welcoming what will also be a much-needed boost for community clubs across the country, Clubs Australia executive director Rebecca Riant echoed the flow-on benefits of the weekend policy news.
“Today’s announcement also reflects that a supervised environment such as a registered club, with strong responsible service of alcohol duties, is a safe and vibrant setting to enjoy a beer.”
The pledge has staved off the next scheduled excise increase, which would take place 1 August this year. At the beginning of February the alcohol tax ratcheted up in line with inflation another 3.9 per cent, to $43.39 per litre. This adds around $2 to the cost of a pint, making Australia’s the third-highest excise in the world.
“Excise has increased no fewer than 83 times since it was introduced in 1983, making the price of a schooner increasingly hard to swallow,” adds Riant.
This latest announcement follows the subdued reaction to the news in late February that the taxman was offering tax relief to brewers, distillers and wine producers, who will benefit from having their excise rebate increased by $50K.
But Ferguson was quick to point out that the policy would see “little benefit, if any, flowing on to consumers”.
In the same vein, Australian spirits manufacturers have cried foul over a freeze only on draught beer excise, claiming it is unfair on the already heavily taxed spirits producers, and accusing Labor of having no legitimate rationale for the policy.
Per Federal law, the federal election will need to be called by 17 May and it’s widely thought the Prime Minister will pull the pin this weekend, meaning Australians will go to the voting booths in April, which will negate the need for the government to present a budget at the end of March.
The Prime Minister says the excise policy will benefit businesses, regional tourism and customers, while Treasurer Jim Chalmers admits the measure will have little impact on the national coffers.
“My Government is building Australia’s future and to do that we need to support our small and medium local businesses to thrive,” said Prime Minister Anthony Albanese.
Both the AHA and Clubs Australia stressed that they would like to see the Liberal Party “get on board” and adopt the beer tax policy, which would all but ensure it proceeds.
It is highly likely the Opposition will back the policy, if only to negate any perceived benefit in the eyes of voters.
