Aaron Violi (Casey, Liberal Party) Share this | Hansard source

The coalition supports the freeze to beer excise indexation. We support welcome relief for our pubs, clubs and, indeed, all hardworking Australian beer drinkers. We recognise the immense struggle of the hospitality sector and we will not stand between it and a cut to the beer tax in this parliament.

However, we must be upfront about what this legislation achieves and what it leaves completely undone. While we welcome this temporary measure, we must call it out for what it is. It's little more than a political stunt. This minor targeted fix utterly fails to address the deep, systemic and widespread cost-of-living crisis that the Albanese Labor government has created and continues to fuel.

The urgency of providing any measure of relief to the hospitality sector cannot be overstated. The industry that supports local manufacturing, creates jobs, supports hospitality workers and boosts tourism is absolutely essential to communities like mine. In the Yarra Valley and the Dandenong Ranges, we have many local brewers and distillers but also small business owners who run pubs, yet the hospitality sector is being destroyed by the current economic environment.

The figures detailing the devastation wrought by Labor's failures are staggering and heartbreaking. On Labor's watch, 4,000 hospitality businesses have gone out of business nationally. The situation is so desperate that the collapse represents the loss of over 4,000 places of employment for local workers and Australians in the hospitality sector. Statewide in my home state of Victoria alone, we lost 969 businesses in the accommodation and food industry. Even in community of Casey, in the 2024-25 financial year, 17 companies in the accommodation and food industry entered insolvency or administration. We must do more to support this industry to get back on its feet after a few difficult years under the Albanese Labor government.

The fundamental reason these businesses are being crushed is simple—Labor let inflation rage out of control. While Labor allows inflation to get out of control, the twice yearly indexation causes the excise bill for these hospitality venues and brewers and distillers to soar. Increases in excise are not just another tax hike; they constitute a significant burden on distillers and hospitality venues and a cost that simply cannot be absorbed. Every time brewers and distillers are hit with an increased excise bill, they have no choice but to pass this cost on, which hits hospitality venues and local pubs. These local venues, which cannot absorb the cost, then pass it on to consumers. The price of alcoholic beverages has already increased by over 11 per cent since Labor came to office.

The coalition recognises this severe struggle. We had already given this issue serious consideration and took a policy to the election to freeze indexation on the draught beer excise for two years, specifically to support our hospitality sector, which has been hammered by this Labor government. We are supporting the bill now because we recognise the urgent need to pause the increases in the excise. This pause applies specifically to on-premise draught beer, meaning beer served on tap. The intention is to provide businesses that have gone through COVID, record high inflation and the endless cost-of-living pressures with some stability. However, we must be honest about the limitations of this legislation. This is merely a patchwork fix in the face of Labor's systemic economic mismanagement and high inflation.

Firstly, the scope of the measure is far too limited. The freeze applies only to on-premise draught beer. It does absolutely nothing for bottled beer, packaged drinks, wine or spirits. If the government were serious about cost-of-living relief or supporting the entire manufacturing and hospitality supply chain, it would be looking at every part of the excise system. Secondly, the relief delivered to the consumer is negligible. This freeze delivers less than 1c of relief per pint. That's enough to give Labor the headline of the cut to the beer tax, like so many of their policies, but it is just a headline. Households need genuine action on the cost of living, not 1c off beer. The policy will be wholly ineffective in helping everyday Australians.

The alcohol industry directly supports around 176,000 full-time-equivalent jobs. Alcohol related jobs in the hospitality sector alone account for a whopping 126,300 of those positions. These businesses deserve real structural support, not a symbolic one-off, 1c gesture. If Labor were serious about the deeper issues of the alcohol excise system, they would have advocated for a comprehensive review of the alcohol excise system. They have shown no plans to fix the $600 million illicit alcohol tax gap identified by the ATO. Instead, we receive piecemeal freezes. The true obstacle facing the Australian economy and our local small businesses is the government's failure to control its own spending, which has directly resulted in the inflation crisis we are living through today.

Just last week, inflation smashed through the RBA's target band. This proved that Labor's cost-of-living crisis is far from over. The RBA is now in an impossible position, with both inflation and unemployment running higher than forecast. The governor is forced to slam on the brakes while the Treasurer has his foot firmly on the accelerator. The cause of this sustained high inflation is Labor's addiction to reckless government spending. Government spending is running at more than four times the rate of the economy. In fact, it is at the highest level outside of a recession in nearly 40 years. The Treasurer, by his own admission, is forecasting a decade of deficits and a decade of spending more money, driving up debt, resulting in higher inflation and fewer services for the Australian people.

The former head of the RBA, Philip Lowe, has already made clear that inflation has lasted longer in Australia because of Labor's spending addiction. Under Labor, government spending has blown out from 24 to 27 per cent of GDP. The Treasurer threw out the coalition's fiscal rules and gave himself a credit card with no limit, and Australians will be the ones left to foot the bill. His current fiscal strategy doesn't even contain a single number, and the Treasurer is clearly violating whatever can be construed as rules.

This economic vandalism has direct and terrifying consequences for Australia's national finances. In the last three years, this government, under this Prime Minister and Treasurer, has added $100 billion to the national debt. Despite the spin of this Treasurer—which is all this Treasurer is good at—under Labor's watch the national debt will reach $1 trillion this year and $1.2 trillion by the next election. Their reckless spending is keeping inflation higher for longer.

Australians are paying $50,000 every minute in interest on Labor's trillion dollars of debt. Over the last three years, Labor has racked up debt the equivalent of nearly $4,000 for every man, woman and child in this country. Think for a moment about what that $50,000 being racked up every minute in interest could be used for. This could be spent on roads, schools and hospitals, on things that are desperately needed in our country—and economic reform, including reform of the excise system. But, no, that money is going to debt because of this Treasurer and this government.

Labor's spending spree has raised the cost of everything. Those costs are never coming down, and that is why Labor are now looking to hike taxes to pay for their spending spree. It's the ultimate buy-now, pay-later scheme, but with a repayment plan dumped on every Australian household.

Mortgage holders are bearing the brunt of this failure. Since Labor came to power we have seen 12 rate rises and only three cuts. This is forcing mortgage holders to pay $1,800 more a month. Unfortunately, we know it's going to get worse tomorrow, because we saw the Treasurer sheepishly stand up in question time and start to make excuses for the economic numbers we are going to see tomorrow. He knows it's only going to get harder and harder for the Australian people because of his failures.

Every Australian is footing the bill for Labor's spending spree in their tax returns, electricity bills, mortgage statements and growing difficulties in finding a job. Because of Labor's economic vandalism, households are paying 15 per cent more for food; 15 per cent more for health—despite the spin of this government; 19 per cent more for housing—again, despite the spin of the Minister for Housing; 37 per cent more for insurance; and nearly 40 per cent more for electricity. As the member for Wannon knows, that's only going to go up for the Australian people under this minister.

The government's two strategies—debt and taxes—are not a plan for prosperity. The only way to fix the damage caused by Labor's failed economic management is through a comprehensive change in approach. The coalition's priority is clear: we must stop the spending spree and start growing the economic pie. This government never talks about growing the economic pie; instead, it is focused entirely on how to cut it up. Under this government, the pie is growing smaller and smaller. This approach leads to higher taxes and economic stagnation. We must move beyond band-aid solutions like the 1c cheaper pint and adopt strategies that generate real sustainable relief.

Genuine economic leadership requires us to remember that a rising tide lifts all boats. Boosting supply is the closest thing we have to a silver bullet. Growing our economy is a means to an end. Without it, we simply cannot afford the better services that we all want, the services that we need, the services that we deserve. If we want to raise living standards, we can start by clearing away bad policy that is shrinking the pie and replace it with good policy that grows the pie. If we want to do that over and over again across the whole of government over time, Australians will become richer, not poorer. Our economy will grow stronger, not weaker. However, that is hard work. It is determined work, it takes time, it takes turning up every day in a full-time capacity, but we know this government do not like to turn up and do the hard work. They like the headlines and the spin. If Labor were serious about cost of living, they would stop the spending spree and start growing the economic pie, and they would immediately re-introduce quantifiable budget rules to stop this reckless spending.

The coalition will support these bills because we will always support relief for local businesses in my community and across Australia. This measure offers a moderate, targeted respite for two years. It will provide stability by freezing the CPI indexation on draft beer, but we will not allow this minor concession to overshadow the cost-of-living and 'cost of doing business' crisis that the Albanese Labor government created and continues to fuel. We must do more to support this industry to get back on its feet after a few difficult years under this Labor government. Unfortunately, the Australian people and the businesses of Casey know it will get harder and harder because they have a prime minister, a Treasurer and an energy minister focused on their own ambitions, not the ambitions and needs of the Australian people. (Time expired)

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