2-Year Beer Excise Freeze Clears Lower House

The bill will suspend indexation of the beer excise retrospectively from Aug. 1, 2025, preventing the usual twice-yearly increases linked to inflation.

A beer tap at a pub in Melbourne, Australia, on March 26, 2025. Asanka Ratnayake/Getty Images

The federal government’s plan to freeze the excise on draught beer has passed the House of Representatives, setting up a two-year pause on automatic tax increases once the legislation clears the Senate.

The Customs Tariff Amendment (Draught Beer) Bill 2025 will suspend indexation of the beer excise retrospectively from Aug. 1, 2025, preventing the usual twice-yearly increases linked to inflation.

Australia’s beer excise is among the highest in the world and is adjusted every six months in line with the consumer price index.

Speaking at the House, Prime Minister Anthony Albanese touted the bill as “one of the most popular commitments” that the Labor government took to the May 2025 election.

“The first time this has happened in 40 years,” he said.

“It took a Labor government to freeze the beer excise—making sure that this was just part of our cost of living measures that we implemented.”

The prime minister also stated that the freeze would help support hospitality businesses, regional tourism and customers by keeping a lid on beer prices in pubs and clubs.

“[It is] good for our economy, good for our jobs, good for our local community as well, and that’s why, from the front bar to the beer garden, when you raise a glass, you can do so knowing that our government won’t be raising the price over that two years,” he said.

Nationals Pushed to Extend Relief to Spirits

During the debate, the Nationals sought to expand the excise freeze to include spirits served in pubs, hotels and clubs.

Nationals MP Anne Webster said while her party supported the bill, it did not go far enough.

“We commend this bill. We support this bill, but we think it should go further,” she said, while backing amendments to also freeze the excise on spirits sold in licensed venues.

Her colleague Pat Conaghan argued the policy unfairly favoured beer drinkers over those who preferred spirits.

“Why should Australians who prefer spirits be singled out to keep paying tax increases while beer drinkers get a break?” he asked.

Conaghan noted that lighter spirits and mixed drinks were more popular to women and younger Australians, who would see no benefit from the beer-only freeze.

The proposed amendment by the Nationals was defeated 81 votes to 23.

While the Nationals broadly backed the legislation, it continued to criticise the government’s economic management.

Speaking on the bill, Webster said the excise pause ignored other cost pressures.

“This excise freezing would be one thing, but we know that wages have gone up. We know that electricity has gone up. We know that the cost of living continues to rise under this government,” she said.

“To pretend that this excise freeze for the next two years is going to solve all the problems is complete and utter rubbish, and every Australian knows it.”