Australian Government Freezes Beer Tax Hikes Ahead of Federal Election

Prime Minister Anthony Albanese announces a two-year pause on draught beer excise increases, aiming to support brewers, pubs, and voters as Labor faces declining approval ratings.

• The Albanese government will freeze biannual draught beer excise increases for two years, starting in August, to ease costs for brewers, pubs, and beer drinkers.
• The measure is expected to cost the federal budget $95 million over four years and save drinkers a modest amount, roughly 10 cents per pint.
• Labor's announcement comes as polls suggest the party risks losing its parliamentary majority in the upcoming federal election, due by May.
• Critics, including spirits producers and the opposition, argue the policy unfairly favors beer over other alcoholic beverages and fails to address broader economic challenges like inflation.
• The brewing industry, which has long called for relief from Australia's high alcohol taxes, welcomed the freeze as a step towards supporting local businesses and regional tourism.

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