Labor and Coalition Agree to 2-Year Freeze on Draught Beer Indexation
The excise on draught beer in Australia is currently almost $20 per slab, with recent announcements from both Labor and the Coalition to freeze this tax for two years. This decision comes after pressure from beer consumers, breweries, and hospitality establishments.
Historically, alcohol tax in Australia has been subject to biannual indexation. In February 2025, the excise on pub beer increased slightly from $43.22 to $43.39 per litre.
According to the Brewers Association of Australia, Australians are now paying close to $20 in tax for each slab of beer purchased, including the goods and services tax.
Prime Minister Anthony Albanese emphasized the importance of supporting small and medium local businesses for the country’s future success.
Both Labor and the Coalition plan to freeze the excise on draught beer, a move that they believe will benefit beer drinkers, brewers, and pubs alike.
While Labor aims to implement the freeze in August for a two-year period, the government will consult with industry stakeholders on the details of this decision.
In addition to the freeze on beer excise, Labor also announced tax relief measures for Australian distillers, brewers, and wine producers, including an increase in excise remission and producer rebate caps.
Opposition Leader Peter Dutton from the Coalition echoed the sentiment, stating that small businesses in the hospitality sector are facing challenges with rising costs. He pledged to freeze tap beer excise for two years to alleviate financial pressures on pubs, clubs, and breweries.
These announcements come ahead of the upcoming federal election, with both parties vying for voter support. Recent polling indicates a close race between Labor and the Coalition.
