If you love heading to the pub for a cold pint of beer, there’s some news that might just make your next round a little more affordable — at least for a while. Prime Minister Anthony Albanese has announced that, if re-elected in 2025, his government will freeze the excise tax on draught beer for two years. But what does this actually mean for the everyday Australian, and how much will it really save you? And how does the tax on alcohol even work in Australia? Let’s get into it.
Breakdown of alcohol tax in Australia
Australia has some of the highest alcohol taxes in the world, with prices increasing every six months due to inflation-linked excise duties. The tax system varies depending on the type of alcohol. Most alcoholic beverages are taxed based on their alcohol content rather than their price. Here’s how it’s broken down:
- Beer: Taxed based on alcohol content, with a lower rate for draught beer served in pubs and a higher rate for packaged beer.
- Wine: Subject to the Wine Equalisation Tax (WET), which is calculated as 29 per cent of the wholesale price.
- Spirits and most ready-to-drink beverages (RTDs): Also based on alcohol content and as they have a higher alcohol by volume (ABV) percentage, they are the hardest hit by the tax based on alcohol content and are significantly more expensive than beer and wine.
Every six months (in February and August), these taxes go up in line with inflation, making your favourite drink more expensive year after year.
What does the draught beer tax freeze mean for me?
The Albanese government’s proposed tax freeze would put a stop to these increases only for draught beer served in licensed venues, like pubs and clubs. This means that while your tap beer price may stabilise, the cost of bottled beer, wine, and spirits will continue to rise with inflation.
Prime Minister Anthony Albanese said that it is a “common sense measure” that is “good for beer drinks, good for brewers and good for pubs.”
How much will it actually save me at the pub?
Let’s break it down (and do a little maths):
The current excise tax on draught beer is $39.27 per litre of pure alcohol. A typical pint of full-strength beer contains around 20g of pure alcohol, meaning the tax per pint is roughly 78 cents. With inflation, this tax rises by around 4 per cent per year. So, without the freeze, we could expect beer prices to increase by 10–20 cents per pint over two years.
So, individually, you may only save a few cents per pint, but if you are a regular pub-goer, this could save you anything from $50 to $150 over a year.
Sounds good, so what’s the catch?
As mentioned above, not all alcohol is taxed at the same rate. While this might be great news for beer drinkers, wine lovers and spirit enthusiasts aren’t getting the same benefit. In fact, spirits industry representatives have criticised the move, calling it unfair. Spirits & Cocktails Australia CEO Greg Holland called the move “discriminatory in every sense”:
“The tax on spirits is already three times higher than it is on beer. Freezing draught beer excise alone is discriminatory in every sense – it favours beer drinkers over spirit drinkers, brewers over distillers, and pubs over bars.”
Greg Holland in a statement.
A bottle of spirits already incurs over $30 in excise tax, and this will continue to increase even with the draught beer freeze in place.
Will the tax freeze actually make beer cheaper?
In short, probably not. While the tax freeze prevents prices from rising as fast, it doesn’t mean pubs will lower their prices. It simply stops further increases. With ongoing cost-of-living pressures, venues may still raise prices due to higher wages, rent, and operational costs.
What’s next?
The Opposition has indicated it may match the tax freeze. This would mean that it would go ahead regardless of who wins the 2025 election. However, the hospitality industry continues to call for wider reforms. Arguing that all alcohol taxes should be reviewed to ease pressure on both businesses and consumers.
Bottom line: Will this save me money?
If you enjoy a pint at the pub, the tax freeze could save you money in the short term. But for those who prefer wine or spirits, the cost of your favourite drink will continue to rise. So, while it’s a small win for beer drinkers, Australia’s high alcohol taxes aren’t going anywhere just yet.
Related stories
Native ad body.
Native ad body.
Native ad body.
Book Review: The Mademoiselle Alliance by Natasha Lester
