Australia’s spirits industry has condemned the Albanese Government’s decision to freeze excise on draught beer, labeling the move as discriminatory against spirits producers, consumers, and the broader distilling supply chain.
Greg Holland, Chief Executive of Spirits & Cocktails Australia, criticized the government for disregarding calls for comprehensive alcohol tax reform. He argued there was no policy justification for exclusively freezing the draught beer excise.
“The tax on spirits is already three times higher than that on beer. Freezing the draught beer excise alone is discriminatory in every sense – it favours beer drinkers over spirit drinkers, brewers over distillers, and pubs over bars,” Holland stated.
He pointed out that bipartisan recommendations from a parliamentary inquiry into the food and beverage manufacturing sector supported reforms to Australia’s alcohol tax system. However, the government’s decision ignored the needs of 700 distilleries across the country, half of which operate in regional areas.
Paul McLeay, Chief Executive of the Australian Distillers Association, echoed the disappointment, describing the policy as a setback following the government’s recent $50,000 increase to the excise remission.
“We’ve spent the past year advocating for the industry’s growth potential, including our ambition to become a $1 billion export industry within the decade,” McLeay said. “The government has so far overlooked this economic opportunity, but we hope further policy announcements will enable us to realize this potential.”
While spirits producers voiced frustration, the Australian Hotels Association, Independent Brewers Association, and Clubs Australia welcomed the beer tax freeze.
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