The Albanese government froze the indexation on draught beer last Monday, August 4, amidst rising costs for producers, pourers, and punters across Australia.
The freeze comes after 84 successive bi-annual tax rises, most recently in February, with another set for earlier this month.
Student Joe Ross-Ward celebrated the pause today at the University of Wollongong’s (UOW) UniBar with fellow pub-goers, appreciating the newly fixed tax.
“I think bars and breweries have a good culture, and hopefully this means more breweries can open up… and stay open,” Mr Ross-Ward said.
Despite this, he emphasised the current reform may see prices disproportionately rise again when the tax freeze ends in 2027, and suggested measures such as scrapping the excise tax entirely for licensed venues would support small businesses.
“Right now, every company gets taxed per litre. If breweries [who produce less] were taxed less, it would make a lot more sense … you could go to a brewery, pay the same price and have good Australian beer.
“It would mean craft brewers’ beer would be at the same price, or cheaper than [major producers],” he said.
Ballarat-based Green Fox Brewery owner Derek Toering is soon to open a taproom of his own, and emphasised the current low profitability of craft beer production.
“I think a lot of breweries invest heavily … you go into some of these taprooms and breweries, and they’ve put a lot of money into them,” Mr Toering stated.
“[It’s] a lot to get back on a $10 pint, dollar by dollar.”
He further expressed concern for struggling brewers and the need for greater support from the Labor government.
“I think Albanese did champion himself as the man for craft beer at the federal election, and nothing’s been done.”
The freeze is projected, however, to create greater employment opportunities in the hospitality industry with cheaper draught beer increasing consumer demand while lowering businesses’ inventory costs.
Northside Hotel Albury bar-tender Madeline Fraser is among those satisfied with the freeze.
“Most pubs and bars, rurally at least, are understaffed … so cheapened prices help with that, and are essential,” Ms Fraser stated.
“Having this tax freeze and being able to pay more staff is exactly what these businesses need.”
