House debates

Tuesday, 25 November 2025

Bills

Excise Tariff Amendment (Draught Beer) Bill 2025, Customs Tariff Amendment (Draught Beer) Bill 2025; Second Reading

7:19 pm

Photo of Dan RepacholiDan Repacholi (Hunter, Australian Labor Party) Share this | Hansard source

There's one thing you learn quickly as the member for Hunter: it's that a good conversation usually starts over a beer. Not in the office, not in a formal meeting—you're standing at the bar of one of our fantastic pubs and clubs right here in the Hunter. Whether it's the Bellbird Hotel, the Aussie in Cessnock, the Horse and Jockey in Singo, the Morisset Hotel down in Lake Mac, the Kurri Kurri Bowling Club or the Western Workers—that's where you hear what people are really thinking.

I've had hundreds of chats in those places, with publicans, bar staff, brewers and locals just trying to relax after a good long week at work. One thing that comes up time and time again is that the cost of everything just keeps going up. That includes the cost of pulling a beautiful beer. When I talk to the publicans and club managers, they tell me the same thing: the twice-yearly indexation on beer excise is killing them. Every February and every August, prices go up and they have to make a call. Either they absorb it and cop the hit, or they pass it on and risk losing the punters. That's why the Excise Tariff Amendment (Draught Beer) Bill 2025 matters. It's not about fancy economics or Canberra jargon. It's about keeping the doors open in pubs, keeping people in jobs and giving locals a fair go.

When you live in the Hunter, you know how important the local pub is. It's more than just a place to go grab a cold one. It's where fundraisers are held, where footy teams celebrate, where mates catch up after a shift and where communities come together. In Branxton I've been to raffles that have raised thousands and thousands of dollars for local kids. In Kurri I've seen the pubs chip in to sporting clubs when the season's gone a fraction over budget. In Toronto I've met the bar staff who know every customer by name and know who's doing it tough. But running a pub or club isn't easy.

Costs are going up everywhere: power, wages, insurance, supply. Every six months the tax on beer quietly ticks up again because of automatic indexation. I don't know too many small-business owners who can plan properly when government keeps moving the goalposts twice a year. It's very hard to plan around. That's why I lobbied the Treasurer hard to take a good look at this. I said, 'Mate, it's time to give our pubs, clubs, breweries and other locals a bit of certainty.'

Having a beer in the Hunter is something most of us enjoy responsibly. This twice-yearly automatic tax hike just isn't working. It's time we find a better way of doing things. The Customs Tariff Amendment (Draught Beer) Bill 2025 and the Excise Tariff Amendment (Draught Beer) Bill 2025 do something simple but really, really important. They pause the automatic CPI indexation of excise and excise-equivalent customs duty rates on draught beer for two years, straight away, from 1 August 2025. It's already happened. We've already been seeing this in the Hunter. The punters have been enjoying it and saving a little bit on their beer as well.

Here's what that means in plain English for people all around the country. Right now, beer tax automatically goes up twice a year, in February and August, in line with inflation. That's what's called indexation. When inflation goes up, so does the tax. Under this bill, we hit pause on that process for two whole years, so the scheduled increases in August 2025, February 2026, August 2026 and February 2027 will not happen. The rates stay the same through the whole period. When indexation resumes in August 2027, it doesn't jump to where it would have been if those hikes had continued. It starts from the frozen rate that we're on right now. That means a permanent reduction in the tax path—a long-term benefit, not just a short-term fix.

This measure is targeted and sensible. It applies to beer being poured from kegs, the eight-litre to 48-litre containers connected to taps in pubs, clubs and bars. It also applies to the big-boy kegs: the 50-litre kegs rolled into hotels and hospitality venues every single day of the week. It doesn't apply to bottled or canned beer. This is all about draught beer that's served over the counter in your local. That's the beer that supports around 10,000 hospitality venues across this beautiful country of ours. About three-quarters of them are small businesses—family run and community backed—and roughly 160,000 workers depend on those venues, from bar staff and cleaners to suppliers and delivery drivers. These are real people and real jobs in every community across the country. By freezing indexation, we're keeping the tax component of a pint, a schooie and, if you're in Victoria, a pot or maybe a little seven—you get them in Victoria as well—stable for two years.

I'll just grab a couple of other pages here. We've got a bit more time going on here.

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