Rob Mitchell (McEwen, Australian Labor Party) Share this | Hansard source

It’s great to rise tonight to support the Customs Tariff Amendment (Draught Beer) Bill 2025 and the Excise Tariff Amendment (Draught Beer) Bill 2025. It's great to do that because what we've seen is this government come to office and actually do things that help people with their cost of living. We heard someone rattle off just before about the cost of living, but what the member opposite never mentioned is that, every single time there's been a cost-of-living amendment, they've opposed it.

Even this, going into the election, was not a bipartisan supported program. In fact, the shadow Treasurer made it clear that they were not doing it. But once Labor came out with it and committed to it, after we had a great report from the committee last year—a bipartisan report—that looked into food and beverage manufacturing in Australia, suddenly the fighting over this stopped momentarily to support something we were doing. And that's the important thing. This is about a government that leads—a government that has brought people from all walks of life under one roof.

We're lucky to have venues in our electorates that bring people from all walks of life together. They are those crucial spaces where members of a community can meet, relax and spend time together and, more often than not, have a nice, cold, frothy one. However, as we know, many of these venues have been doing it tough. With high overheads, strong regulations to meet and a host of other costs, profit margins for many owners can be slim. For these cornerstones of our community, the cost-of-living issues we inherited from the previous government brought many to the brink. It's a delicate balancing act. Charge too little for drinks, and the venue operates at a loss. Charge too much, and no-one comes in.

Throw in a couple more facts and the fact that these businesses are operating at all becomes more impressive. Many hospitality venues are still recovering from the pandemic era disruptions. The lack of trade and the ongoing costs of leases, insurance and utilities depleted savings, and many did go out of business. There were nine years of economic mismanagement by those opposite. When the economy goes down, it pulls small businesses down first.

On 3 May 2025, small operators of licensed venues made their choice. They placed their trust in Labor, the only party that would deliver them the much-needed support. In August, the Assistant Treasurer moved a motion to freeze the increase on beer taxes for two years. Brewers across Australia rejoiced. Through that, we sent an important signal—a signal that we are here for pubs and clubs in particular. We hear you and we are here for you. The bills are a ratification of a government's decision. They clarify our commitment to local businesses. For the first time in 40 years, we are pausing the automatic CPI indexation of twice-yearly increases in duty rates. This directly responds to cost-of-living pressures by backing in Australian businesses. We do this without undermining public health objectives or the broader alcohol taxation framework.

This is a very targeted measure. It's balanced and responsible. It's an intervention that applies specifically to individual containers of eight to 48 litres designed to connect to a pressurised gas pump or pump delivery system. These are the kegs that are used across the country in many of our pubs and clubs—for example, individual containers of more than 48 litres, which are the kegs used in commercial hospitality settings. We are making it easier for function spaces to cater for large crowds. With a million things on the go at the same time, these venues should be able to worry less about what they will charge for drinks or whether they have enough.

For two years, we are encouraging price stabilisation, building the trust between consumers and the local watering hole. Small business needs certainty in order to invest more in their operations. We are providing them with that certainty and reducing the number of sleepless nights spent calculating long-term profitability. When the excise does resume, in August 2027, it will resume at the frozen rate, not the higher rate that would have been applied had indexation continued. This will result in a permanent reduction in the duty trajectory.

This will have direct and indirect effects on groups across society. Firstly, we're making it easier for approximately 10,000 hospitality venues. Of these pubs, clubs, taverns and bars, about 75 per cent are small businesses. They are in our town venues, from Woodend to Bridge Inn Road, from Gisborne to Diamond Creek, Whittlesea, Beveridge and Wallan and everywhere in between.

The Albanese Labor government is committed to small business. These bills are the next tranche in that support, in line with our other commitments, such as providing $207 million over two years from this year to continue the stabilisation of Australia's business registers and undertake targeted uplifts. This includes: linking director identification numbers to the company register; cutting red tape by working with states and territories on national licensing for electrical trades; and streamlining commercial planning and zoning and removing barriers that inhibit the take-up of modern construction methods, which is backed by the $900 million National Productivity Fund.

Secondly, we are pushing for stability in the industry as a whole. Approximately 160,000 workers are employed in the hospitality sector, many relying on the viability of these businesses. We saw that when we were in Woodend talking to the hotel owners about the apprentices they were putting on and the great results they were getting. The first thing they said to us was: 'Clientele is dropping back. When things are a bit tight, people don't come in. As the cost of beer keeps going up, fewer of them do it.' So they were rapt when they saw that we were doing this. They know that what we are doing is putting our bit in to help them through the tougher times and to be with them all the way through. We want businesses to grow, employ more locals and expand their market share. But that's not all. Not only do these bills foster growth; they also protect against harm. In particular, this legislation protects venues against hikes in drink prices and protects local breweries from being bullied by the international ones.

So, first, we prevent cost increases. When the duty rates increase, the venues without a cushy profit margin must factor that into the cost of a pint. Expense costs go up for mum-and-dad owners who sleep in the residence upstairs and don't have other revenue streams, so they are forced to mark up their drinks. The consumer wears the cost increases, or they see the prices and choose not to go to a pub altogether.

Hospitality has an essential role to play in Australian communities, particularly the jobs they provide in regional areas. Our government is committed to protecting these jobs. Pouring and serving pints is a gateway for young adults to develop social skills, leadership abilities and professional experience. By mitigating the price increases we pass on to consumers we promote visitation at the local club or pub. By encouraging price stability we build trust between patrons and the places they go to relax and promote Australian jobs.

Second, we prevent local breweries from going under. Similarly, by pausing the automatic CPI indexation, we make it easier for local brewers to grow in the Australian draught beer market. Emerging local breweries face an uphill battle. Without the reputational advantage the bigger companies enjoy, it's much harder to get tap space at pubs. By pausing the excise on draught beer, we give our bars financial breathing room. This allows them to offer a wider range of options and gives more Australian owned breweries footholds in our bars. Here, we are giving local breweries and publicans a chance to grow their businesses. This will have tangible and far-reaching effects across Australia, particularly in the regions, peri-urban towns and suburbs.

In our community, hospitality jobs provide many of the skills that set young people up for adulthood. Behind the bars of our clubs and pubs, many young adults learn to manage tasks quickly and to work as a professional team—not to mention the timeless art of pouring the perfect pot or pint. But, when there aren't enough workers to meet demand, it can be overwhelming, with the physicality of carrying trays and cleaning floors, the mental challenge of catering for so many people at the same time and sometimes dealing with less courteous patrons. The pause on CPI indexation will reduce the strain faced by hospitality workers while putting our pubs and clubs in a position to put more hands on deck.

We're enhancing the community experience. Pubs and clubs are a community focal point. These venues are meeting places for old friends or where families go for a good dinner. They host everything—pub trivia nights, stand-up open mics and end-of-season sporting functions. They sponsor the local footy team or the local netball team and host barbecues and raffles for charities. These places bring members of a community together. These places have a special, binding effect. Over a beer, people make friends, find partners and become part of a social group. In the digitised world, with more and more interactions behind the screen, community venues are a place of connection, and they deserve our support.

With a pause in the custom duty rates, not only will people walk into their local watering hole; they will travel further to seek these experiences out. If we protect our local venues, we can help them become destinations for domestic and international visitors. Take it from the Restaurant and Catering Association. According to them, more premium, domestically reduced products allow for a more vibrant, exciting dining scene that is more attractive to domestic and international tourists visiting Australia. We are helping not only hospitality but the broader tourism industry. Across Australia, we're inviting people to enjoy the vibrant and diverse experiences our venues have to offer.

These bills further support community venues by providing pricing stability. The Albanese Labor government will always stand up and advocate and legislate for the interests of workers and those doing it tough. These bills are consistent with our view that small business is the engine room of our economy. Supporting them is supporting our nation as a whole. We are legislating cheaper beers, more opportunities for local enterprises and better community experiences. Much like a nice beer, this policy is smooth, refreshing and pairs well—not with food but with our dedication to making a better country for all. I commend these bills to the House. Cheers!

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