Australia: Industry body calls on government to extend beer tax freeze to tap spirits

Spirits industry body Spirits & Cocktails Australia announced on November 26 a proposed amendment to the Excise Tariff Amendment (Draught Beer) Bill 2025 that would extend it to include tap spirits served in Australian venues, the Drinks Trade reported.

The proposal follows on from the start of the two-year beer tax freeze at the time of the August bi-annual increase.

Since then, two independent members of parliament have moved new amendments advocating for its extension, with Member for Kooyong Monique Ryan seeking a permanent draught beer excise freeze and member for Bradfield Nicolette Boele calling for a freeze on the indexation of packaged product made by Independent Brewers Association members.

The proposed change simply calls on the addition of “and tap spirits” after the two instances beer is mentioned. This would include all bulk containers of spirits and premixed drinks designed to be connected to tap systems and would exclude standard bottles of full-strength spirits and packaged RTDs.

“Tap spirits are a growing part of the product mix for pubs, clubs and small bars and appeal to a wide variety of customer demographics,” said the newly-appointed Executive Director of Spirits & Cocktails Australia Steven Fanner.

“Spirits are taxed more heavily than beer or wine, and the rate of excise applied increases every six months. The most recent rise pushed the tax on spirits to $30 on a standard 700ml bottle of gin or whisky.”

The proposed extension to the Bill also follows on from a positive initial response from Australians towards the concept, with Fanner noting that “every MP who has spoken on these Bills in Parliament so far has noted the positive impact a freeze will have on jobs and the hospitality industry.

“Applying the freeze to all tap alcohol would ensure that every patron buying a drink at the bar will get the same cost-of-living relief. For every three beer drinkers, there are two people who choose to drink spirits, according to the AIHW. These consumers will continue to face price hikes every six months.”

Spirits & Cocktails Australia also outline the comparatively low cost of around $5 million to extending the excise freeze to tap cocktails, with the government forecasting $95 million over five years for the draught beer freeze.

While not mentioned in the Spirits & Cocktails Australia’s correspondence with Drinks Trade, the amendment would also likely prove beneficial for innovation in what is a rapidly emerging segment of on-premise liquor consumption. Tax incentive such as this would encourage widespread investment, potentially helping to consolidate Australia as a global leader in the future.

Spirits & Cocktails Australia proposes the following amendment to the Excise Tariff Amendment (Draught Beer) Bill 2025:

“The Bills amend the Excise Tariff Act and the Customs Tariff Act to pause the indexation of the excise duty rates and customs duty rates on draught beer [insert: and tap spirits] for two years. These amendments take pressure off businesses for the price of beer [insert: and tap spirits] poured in pubs, clubs and other venues, supporting businesses and regional tourism across Australia.”

The amendment would include two new subitems to the Excise Tariff Schedule, applying to tap spirits below and above 10% abv respectively.

Steven Fanner concludes: “Many patrons in Australian pubs and clubs are now disadvantaged by an excise freeze that doesn’t apply to the spirits drinks they are ordering on tap at the bar. With a sensible and modest amendment, the Government can ensure a fairer and more equitable treatment for all Australian drinkers.”