Excise Tariff Amendment (Draught Beer) Bill 2025

Nicolette Boele

I move the amendment as circulated in my name:

(1) Schedule 1, item 1, page 3 (after line 23), after section 6L, insert:

6M Temporary freeze in indexation for craft beer

(1) Despite any other provision of this Act, subsection 6A(1) applies, in relation to craft beer and each CPI indexed non-draught beer rate, as if the indexation factor were 1 for each of the following indexation days:

(a) 1 August 2025;

(b) 1 February 2026;

(c) 1 August 2026;

(d) 1 February 2027.

Note 1: This means the rates as they are on 31 July 2025 will be unchanged for the next 2 years.

Note 2: When indexation resumes in August 2027, the indexation factor for 1 August 2027 will be applied against these unchanged rates (see subsection 6A(1)).

(2) In this section:

CPI indexed non-draught beer rate means a rate of duty set out in subitem 1.1, 1.5 or 1.10 of the Schedule.

craft beer means beer brewed by a member of the Independent Brewers Association or a similar not-for-profit organisation representing independent, local brewers with appropriate governance of member eligibility and conduct.

indexation day has the same meaning as in section 6A.

Everyone knows that households and small businesses around the country have been doing it tough. The cost of living has been hurting Australians for some time now. To address that, one of the Labor Party's election promises was to pause indexation on draught beer excise and excise-equivalent customs duty rates for two years from August 2025. The idea, of course, is to ensure that the price of a cold one down at the pub stays the same for a little while longer. The legislation, the Excise Tariff Amendment (Draught Beer) Bill 2025, implements that promise. The Labor Party has a clear mandate for it, so I will be supporting the legislation.

However, in my view, the underlying election promise was flawed. By pausing the excise on draught beer only, the policy mostly benefits large, multinational companies and does nothing to assist the small independent craft brewers that Australians have come to love so much. Excise on those craft beers will not be paused under the legislation, which means the price of them will keep rising, even as the excise for draught beer stays the same. My amendment addresses that by extending the two-year excise pause to independent craft beer. If government revenue—taxpayers' dollars—is going to be spent to alleviate the cost of doing business, I want to make sure that it's helping local businesses.

Take Buckle Cafe and Distillery in Artarmon in my electorate of Bradfield as an example. After this legislation was introduced, I got in touch with Ben, the owner, to see whether he thought extending the excise pause would help the distillery and other similar local craft breweries. Ben said:

It's getting harder and harder.

I've been in the industry 15 years now and the day to day has certainly not gotten easier.

The freeze on draught beer excise was a great vote winner from Labor. Unfortunately, it sounds great;

But it actually disproportionately favours the big multinational brewers because they dominate and control a lot of the taps in the market.

He goes on to say:

It's about a fair go.

The Independent Brewers Association, whose members are overwhelmingly small to medium-sized business in big cities and small communities throughout Australia, agree with Ben from Buckle. The IBA points out that independent brewers employ locals, give back to their communities, strengthen Australia's manufacturing capability, provide tourism destinations and work directly with the agricultural sector. Critically, their profits stay in Australia.

So I repeat: if the government is going to be spending taxpayer money pausing an excise on beer, surely independent Australian businesses should be the priority. Spending that taxpayer money for the benefit of multinational companies just doesn't pass the pub test. Let's see if the government is listening. I commend the amendment to the House.

Helen Haines

I rise to support the member for Bradfield's amendments. These are good and sensible amendments. In my electorate of Indi and north-east Victoria we are lucky enough to have locally owned, locally loved and nationally renowned breweries no matter where you turn. In Beechworth, Bridge Road Brewers are celebrated for their Beechworth Pale Ale, a craft staple in pubs across the country. They're also a leader in the zero-alcohol market, with their popular Free Time pale ale now accompanied by a full range of alcohol-free stouts and hazy ales. Their raspberry sour was recently crowned Australia's best non-alcoholic beer.

Bright Brewery, a little further into the mountains, certainly know how to put on a family friendly party. This terrific venue beside the Ovens River is the place to be, no matter whether it's the Bright Rod Run or the Brighter Days Festival. Back in the High Country we have Mountain Monk Brewers and Crank Handle Brewery in the upper Kiewa Valley in Mount Beauty, both popular destinations after a big day on the slopes in snow season. Mitta Mitta Brewing Company is a great stopover on your way to the High Country, while King River Brewing Co have an impressive range and hold their own against the famous wineries of the King Valley. In Wangaratta, Pedal Slowly are demonstrating that a regional microbrewery can achieve in a small place, while On Point Brewing in Alexandra is a must-visit for those travelling through Murrindindi shire as it recovers from devastating bushfires.

Breweries aren't just a nice place to visit; they're vital supporters of local industries. When a local brewery thrives, it creates jobs, engages local agriculture and helps sustain the visitor economy. Local, independently owned breweries are strong contributors to the social and economic fabric of many regional communities, with the sector being worth more than $3.5 billion per year. Independent breweries reinvest profits in local wages, local suppliers and local infrastructure rather than overseas shareholders and multibillion-dollar corporations that often pay little tax. If we want locally owned breweries to sustain this contribution to local employment, tourism and community life in rural and regional Australia, then policy settings must reflect the outsized benefits they deliver back into their communities.

While I overall support this bill, I express the same frustrations as my colleagues and the independent brewing sector that this measure will only apply to draught beer. I've spoken with the Independent Brewers Association and small brewers right across the electorate of Indi, and they tell me clearly that, while any change to excise to ease cost pressures is welcome, the government's decision is still only a drop in their proverbial ocean, because they mostly sell packaged beer, not draught tap beer. The simple fact is this bill will take 10c off the cost of a beer or $36 if you had a pint every single day for the next year.

While the benefits to consumers are small, the benefits of this $95 million tax break will mostly benefit big international beer conglomerates, because the draught beer market is overwhelmingly dominated by three major brewers who control around 90 per cent of the market. They buy up local Australian brands, market them as Australian and then ship their profits offshore. While I try to avoid colloquialisms in this place, this is the appropriate time to say, as my colleague has just said, that this one absolutely does not pass the pub test. When foreign entities have such a strong hold on the sector, it's hard to understand why the government is passing a measure that will disproportionately benefit their bottom line, when it could have designed this tax break benefit for Australian companies.

I believe that a targeted pause in excise for independent Australian producers is a fair and sensible way to back local jobs, local investment and local ownership. They argue, and I agree, that such a pause would not only help stabilise a sector under real strain but also support greater investment in domestic production and in the independent retail market, where small brewers have more opportunity to get their products on shelves and on tap. If we want a vibrant, competitive beer industry in Australia with strong local producers and retailers in regional communities, like those in Indi, then we must be prepared to rethink the excise settings in a serious way and not just tinker at the edges to benefit big business.

Milton Dick

The question before the House is that the amendment moved by the honourable member for Bradfield be agreed to.