Alison Penfold (Lyne, National Party) Share this | Hansard source

I rise in solidarity with my hardworking, dedicated and community minded pubs and brewers to speak on this legislation—legislation which does the absolute bare minimum to aid them and their industry and does absolutely nothing to address the significant issues that exist within the alcohol excise system. The Excise Tariff Amendment (Draught Beer) Bill could have been a lot more than what it is. This bill could have gone a whole lot further than just implementing an election promise to temporarily halt the twice-yearly increase in excise of draught beer at pubs and clubs. That is all that it does. By 'temporarily' I mean that this measure will pause indexation of the beer excise for just two years—but that's enough to give the Albanese government it's 'cheaper beer' headline.

Should the beer drinkers of Australia rejoice? Well, the actual monetary significance of the measure amounts to just two-fifths of not much. The excise pause will deliver less than 1c per pint of amber fluid. It will not have any meaningful impact on the cost and/or price of draught beer, and it's only on draught beer at the tap. It doesn't apply to microbrewers or retailed packaged beer. The reality is that this bill fails to address the Albanese Labor government's cost-of-living crisis and ignores the deeper issues with the alcohol excise system. What they haven't said is that this hidden tax has gone up every six months for the last 35 years—something like 85 times—and they are not going to look into this whole alcohol excise issue.

Another point is that this intention was announced during the election and was meant to be applied in time for the excise increase on 1 August, but we're only getting to the bill now. Why the hold-up, and why just a pause on tap draught beer? Why not packaged beer, tap spirits and the like? And why not pause the excise on wine or cider or any other alcohol products? Let me tell you why. This measure is worth just $90 million over the forward estimates, which is completely minuscule compared to the $8 billion collected annually from all alcohol taxes. The measure accounts for less than two per cent of the total annual alcohol tax receipts, so they'll just keep on slugging people who like a glass of wine or something stiffer and keep that revenue rolling in. The excise is a lazy hidden tax, and Australians continue to pay the third-highest excise levels in the world, according to the Australian Hotels Association. Clubs and pubs have no control and can only pass the tax on to ordinary Australians. Many of the publicans and staff that I have spoke to in pubs and clubs across my electorate have had no choice but to absorb recent increases in excise or lose punters at the bar. If this government were serious about alcohol tax reform, they would have Treasury conducting a comprehensive review of the system.

The coalition acknowledges that there will be a little relief for pubs, clubs and beer drinkers, and we are certainly not going to stand between a cut to the beer tax and the government. But this could have been much more. It has 'missed opportunity' written all over it, and it's not an inflation buster. Inflation has smashed through the RBA's target band. That means more expensive mortgages and groceries. The cause of high inflation is reckless government spending, which is running at more than four times the rate of the economy. Recent inflation data has highlighted just how ineffective this policy will be at helping everyday Australians. Households need genuine action on the cost of living, not one cent off a schooner. Government spending is running at more than four times the rate of the economy, and it is at its highest level outside of a recession in nearly 40 years. This government's unfettered spending is keeping inflation higher for longer while Australians pay $50,000 every minute in interest on Labor's trillion dollar debt. Because of Labor's economic vandalism, households are paying 15 per cent more for food, 15 per cent more for health, 19 per cent more for housing, 37 per cent more for insurance and nearly 40 per cent more for electricity.

The RBA is now in an impossible position, with both inflation and unemployment running higher than forecast. The Treasurer has his foot on the accelerator and an eye out for the headlines while the RBA governor, Michele Bullock, is looking for the handbrake. Mortgage holders are paying $1,800 more a month since the Albanese government came to power, with 12 rate rises and only three cuts. But wait; don't despair—beer will be a tiny bit cheaper! Everyday Australians are footing the bill for this government's spending spree in their tax returns, electricity bills and mortgage statements and in their growing difficulty in finding a job. Government spending has blown out from 24 per cent to 27 per cent of GDP under this government.

A number of inquiries have recommended a review of the beer and alcohol market for anticompetitive practices and the alcohol tax regime over the years, and yet nothing has eventuated. According to the Independent Brewers Association, the representative body for more than 600 microbrewers and their supply chain partners across Australia, beer is becoming unaffordable—$8 for a schooner is a good get these days. Despite the fact that the microbrewery industry experienced extraordinary growth in the decade leading up to 2021—it grew to almost eight per cent of the total Australian beer market in 2021—the sector needs more attention than this government is willing to give it. The RBA says 48 per cent of independent brewing businesses are struggling to maintain profitability, while the foreign owned multinational companies enjoy significant profit margins. While the excise tax on beer has increased every six months, the tax on wine has not. Since February 2020, excise tax on beer has increased by 20 per cent. The tax on the average glass of wine is now eight times cheaper than the tax on an average beer. The RBA also says that two big foreign owned breweries have an 83 per cent share of the Australian beer market. If you add that to the five per cent market share the major retailers have with their home brand beer, the more than 600 Australian owned small businesses are forced to compete for seven per cent of market share.

You'd think that that would be of interest to this government and the Treasury. I know it's of interest to the owners of the Coastal Brewing Company in Foster in the Lyne electorate, David and Helen Black, who just recently won the Champion Lager and Champion Pale Ale at the Sydney Royal Beer and Cider Show along, with two gold medals, five silver medals and a bronze medal. The Coastal Brewing Company focuses on producing high-quality small-batch beers, with distribution largely focused on New South Wales between Canberra and the Queensland border. So does the Tinshed Brewery in Dungog, offering, like the Coastal Brewing Company in Foster, a range of beers from the well known to the eclectic. They're good businesses and good business for our community, as are all of our pubs and clubs, providing social venues and active, generous support and sponsorship for sporting clubs and community groups. They create and provide employment. Many are at the heart of their communities.

The alcohol industry directly supports the employment of around 176,000 full-time equivalent jobs. The alcohol manufacturing industry employs people in around 2,500 jobs. Alcohol related jobs in the retail sector number a further 21,000 jobs. Alcohol related jobs in the hospitality sector number a whopping 126,300.

Again, the coalition acknowledges that there will be a small amount of relief for pubs, clubs and beer drinkers, and we will not stand between a cut to the beer tax and the government. But this could have been much more. It certainly is, as I've said previously, a missed opportunity.

This bill is only a minor fix in the face of high inflation and cost-of-living pressures. There's no sign of a broader excise reform conversation. All we get is just a two-year pause on tap beer indexation. There's no acknowledgement of, nor strategy to address, the alcohol market share, equity and profitability questions. Likewise, there's nothing to address the government's spending spree, which is fuelling inflation and cost-of-living pressures—as is its rush to renewables, which will cost Australian taxpayers $9 trillion, putting Medicare and the NDIS at risk.

What should really be front of mind for the Albanese government is measures that genuinely address cost-of-living pressures, not policies that are putting further pressure on the cost of living. Australia needs genuine economic leadership. We need policies that focus on raising the living standards of Australians. Sadly, we won't get that with this government. We will need the strong economic management of a coalition government for that, something many, many of my constituents are very impatient for.

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