Sarah Witty (Melbourne, Australian Labor Party) Share this | Hansard source

I rise to speak today in support of the Excise Tariff Amendment (Draught Beer) Bill 2025 and the Customs Tariff Amendment (Draught Beer) Bill 2025 because Melbourne understands hospitality. In Melbourne, hospitality is not a backdrop; it is the soundtrack—from the clutter of plates on Brunswick Street to the roar of a pub before the siren at the G. We know that Melbourne is the heart of Australia's hospitality scene, and these bills keep it that way. The indexation pause that began on 1 October 2025 is another example of how this government is supporting small businesses and the workers they employ.

Under these bills, the scheduled increases from August 2025 through to February 2027 will not occur. Instead, indexation will resume in August 2027 at the frozen rate, which permanently lowers the long-term excise path. This is responsible, targeted relief that helps around 10,000 venues nationwide and supports 160,000 workers across the brewery and hospitality sectors. It also supports Melbourne's creative life, from the musicians who rely on gig rooms to the comedians, artists and event organisers who build their careers inside these venues.

In Melbourne, hospitality is not just an industry; it is one of the defining features of our city. Walk through Carlton or Fitzroy at any hour and you feel it. Catch a tram down Bridge Road in Richmond, through the city or on Chapel Street in South Yarra and you'll see it. Hospitality gives people income, stability, community and wellbeing. It is one of our biggest employers and one of the most important cultural forces. The bills strengthen the venues that make Melbourne Melbourne.

I want to speak about something that started as a little gem and grew into a movement: Mountain Goat in Richmond. Two mates started it in the late 1990s in an old warehouse, brewing with second-hand equipment and offering local pizzas on a Wednesday night while the taps ran. Those early nights helped build Melbourne's craft beer culture. They were pioneers, experimenting, taking risks and helping shape what the industry became. In Melbourne, ordering a beer is not a simple choice; it's a commitment. You ask for the tap list and, suddenly, you're looking at 30 options, half of them brewed within walking distance. At that point, you're not choosing a drink; you're entering a relationship. That newfound relationship reflects something real.

Draught beer is essential to how hospitality operates in the city. When the excise remains stable, venues can maintain prices, keep customers coming through the door and hold onto staff with confidence. That support, delivered by these bills, sits inside a broader economic reality. Many hospitality venues have seen their margins squeezed by rising import costs. They simply cannot absorb an increase in excise twice a year without consequences. A pause on indexation means small businesses can plan across the next two financial years with accuracy. It helps protect jobs. It helps protect business viability. It helps protect local economies that rely on hospitality to stay vibrant. In Abbotsford, Bodriggy Brewing shows what that looks like. The venue was transformed from an old LP gas conversion warehouse into a community space that supports local artists and live music. This creative ecosystem depends on stable, predictable costs. When the stage lights stay on, our cultural life stays strong.

These bills also support the brewing sector, which relies heavily on keg sales to maintain cashflow. Kegs require more labour, more logistics and more handling than other forms. These bills support more jobs; keep excise stable; and help brewers plan production cycles, invest in equipment and maintain predictable relationships with pubs and venues. Stability flows through the entire supply chain—from farmers growing grain and truck drivers delivering kegs to technicians maintaining tap systems.

Another great example from my electorate is the Mill Brewery at the Bendigo Hotel in Collingwood, sitting inside a venue that has been part of Melbourne's live music DNA for decades. Its beer sales support musicians, comedy nights and a thriving local arts scene. Places like this hold neighbourhood identity. They aren't just venues; they are cultural anchors.

These bills also deliver measurable financial benefits. By pausing indexation four times over two years, this government is helping save venues from automatic increases that would have compounded into real pressure. The permanent lowering of the long-term excise trajectory means businesses in future years will pay less tax than they otherwise would have. This helps small venues stay open, helps new venues survive the hardest early years and helps established venues serve the communities that rely on them. These savings matter. For many small pub operators, even a modest reduction in expected costs can be the difference between maintaining hours or cutting them, investing in local staff or delaying that decision, and continuing to operate or closing the doors. Hospitality operates on tight margins. Predictable costs support secure livelihoods.

Another venue in Melbourne is Brick Lane Brewing near the Queen Victoria Market. It shows how powerful that support can be. Brick Lane was founded by a collective that included local athletes, hospitality leaders and industry experts who wanted to create a brewery grounded in community. They employ locals, invest in brewing apprenticeships and help revitalise the Queen Victoria Market precinct. A pause in excise indexation gives them and their workers certainty as they continue to grow. In Melbourne, we do not just drink beer; we workshop it and we analyse it. I have listened in as bar goers in Richmond describe an IPA the way others would describe a novel or a long-lost lover.

To reflect more broadly on what this legislation means from the economic stability of the communities we present, in an industry like hospitality, long-term planning is not an abstract exercise. It's the difference between investing in equipment, repairs and training or deferring them indefinitely. For small-business owners, certainty translates directly into confidence and confidence translates into better decisions for workers and customers.

In Melbourne, our hospitality venues aren't just places to eat or drink; they are the rooms where the city remembers who you are. They are where people go when celebrating, when feeling lonely, when starting over or when they just need to sit somewhere and feel familiar. When a venue can plan ahead, it can keep being that anchor—the place that stays open when someone needs a moment of normal; the place a community leans on without ever even having to ask. Our venues give Melbourne somewhere to gather, to breathe and to belong. This pause also improves the resilience of the supply chain behind every keg.

Breweries depend on predictable demands from pubs. Transport providers rely on predictable routes. Grain growers rely on predictable production schedules. When excise is stable, the entire chain becomes easier to manage. Businesses can commit to local suppliers with greater certainty and create more reliable income streams for people who support the industry from behind the scenes. This doesn't just effect the great restaurants and bars of Melbourne. Every dollar spent in a hospitality venue circulates through multiple layers of the local economy. It supports small suppliers who rarely get mentioned: the local bakeries delivering bread, the florists supplying events and the cleaners keeping venues clean and welcoming. When venues remain strong, they keep people employed, they keep money moving and they keep neighbourhoods active.

Strong hospitality helps reduce isolation, supports mental wellbeing and delivers social benefits that extend well beyond the economic ledger. That is why targeted, responsible relief is so important. It is not a subsidy of luxury. It's about strengthening a sector that plays a crucial role in our social and economic life. It's about helping small businesses manage costs during volatile periods. It's about ensuring workers have stable workplaces that support their wellbeing, their income and their sense of security. In Melbourne, that matters. Our cafes, pubs and small bars are the places where ideas spark, friendships form and communities take shape. The intent is simple: strengthen businesses that give Melbourne its character, support the spaces that bring people together and make sure our hospitality scene continues to thrive as one of the great engines of the city's culture and identity.

Melbourne anchors the national hospitality landscape. Our city hosts the largest sporting events in the country, including the Australian Open and the Grand Prix. We host major festivals, conferences, exhibitions and celebrations. None of these events function without hospitality. Hospitality workers welcome international visitors, serve families, support tourism, and keep the city running long after other industries close for the night. When we support hospitality in Melbourne, we support the national visitor economy. As we strengthen Melbourne's international reputation, we strengthen Australia's place in the world. Our city is known internationally for its food cultures, its laneway bars, its world-class service and its ability to deliver major events with precision and generosity. The skills held by Melbourne's hospitality sector—creativity, professionalism, technical expertise—are part of what makes our city competitive on the global stage. When we invest in this industry, we safeguard not just local culture but Melbourne's standing as one of the world's great event and hospitality capitals.

These bills complement other government measures that support households and small businesses. They sit alongside bill relief, support for apprentices and increased rent assistance. Together, these measures help families manage cost-of-living pressures and help small businesses remain competitive. The impact of these bills extends beyond alcohol taxation. It helps protect the social fabric of our communities. Hospitality venues offer connection and belonging. They give people a place to celebrate together, to relax and to be part of something larger than themselves.

A strong hospitality sector supports mental wellbeing and strengthens neighbourhood life. I once heard a bar tender in Collingwood explain a list of seasonal beers that included a pale ale inspired by tropical sunsets, a pilsner inspired by buttery croissants and a stout inspired by existential dread. That sense of humour and creativity are part of who we are. These bills help protect the places that make that possible.

The pause in indexation is responsible. It maintains the structure of alcohol taxation. It avoids inflationary pressures. It is temporary and measured. It provides real and practical support for small businesses that employ thousands of Australians. These bills recognise the value of work, the importance of stability and the need to protect industries that bring communities together.

Melbourne is a city that takes its social spaces seriously. Our pubs, bars and breweries are where ideas start, friendships grow and community is built. Protecting them isn't nostalgia; it's an investment in the civic life that makes this city what it is. Melbourne leads the nation in hospitality. This legislation helps ensure we continue to lead not by accident but by design—through careful policy, real relief and a clear understanding of the role hospitality plays in the lives of our communities.

I am proud to support these bills. I am proud to support the workers and businesses that make Melbourne what it is: a great place to live. Melbourne does not follow hospitality trends; Melbourne sets them, and this legislation will keep us setting them. I commend the bills to the House.

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