Pat Conaghan (Cowper, National Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

I rise to speak on the Excise Tariff Amendment (Draught Beer) Bill 2025 and a related bill, the Customs Tariff Amendment (Draught Beer) Bill 2025. The coalition will support these bills, because freezing a tax on beer is common sense, and we won't stand in the government's way. But there is much more that needs to be done.

Let me start with a bit of background to these bills. Australians face automatic tax increases on alcohol twice a year: on 1 February and on 1 August. That means that every six months excise goes up automatically, regardless of business conditions. It happens whether inflation is high or low, whether the economy is struggling or strong, and whether pubs and clubs can afford it or not. It's a system that runs on autopilot, and right now that autopilot is flying straight into an inflation storm. Just last week we saw inflation break through the Reserve Bank's target band again. That's bad news for mortgage holders, bad new for families and bad news for small businesses, who already face higher costs at every single turn. And drinkers get hit by inflation twice: once through rising prices and again through higher excise.

This bill gives small relief from the excise but does nothing to tackle the rising prices. So any pause, any breathing space for pubs, clubs and everyday Australians, is worth supporting. But we should also be clear about what this measure actually delivers. This freeze saves less than 1c per pint. It does nothing about the high inflation we continue to see under Labor. High inflation means that the prices of your groceries, your power bills and your mortgage continue to go up. Under this government, we've already seen food prices go up by 15 per cent, housing by 19 per cent, insurance by 30 per cent, gas by 38 per cent and electricity by a whopping 39 per cent.

Households need genuine action on the cost of living, not 1c on a beer. This change is nothing more than crumbs from the Treasurer's table. Yet, for many mid-north-coast hospitality venues, like the Willawarrin Hotel, the Hoey Moey, King Tide Brewing, the Pier Hotel, and Dave Richards at the Great Northern Hotel Kempsey, even crumbs can make a little bit of difference. These businesses have carried more than their fair share of pain. They've survived lockdowns. They've battled chronic staff shortages. They have absorbed spiralling costs of power, produce, insurance and freight. And they've seen their patrons tighten belts while their own margins disappear. Yet they're still standing, because they're stubborn, hardworking and deeply connected to their communities. They deserve a fair go. Unfortunately for many of these venues, this relief has come too late.

I have a lot of pubs in my electorate of Cowper. I know the publicans, I know their staff and I know what the places mean to them. They sponsor the junior footy clubs. They host the charity raffles. They're there for weddings, birthdays and wakes. They're where people meet to celebrate and to mourn. In many country towns the local pub is not just a business; it is the beating heart of the community and it's where you find connection and a bit of laughter when times are tough.

Australia's alcohol industry contributes enormously to our economy. It supports around 176,000 full-time-equivalent jobs. That includes 22,500 in manufacturing, 21,000 in retail and more than 126,000 in hospitality. It's one of the largest employers in regional Australia, and it keeps countless small towns alive. In total, alcohol excise generates around $8 billion a year in tax revenue, with the GST adding even more on top. So changes to excise affect far more than just the cost of a beer; they affect jobs, wages and community life.

While the coalition supports this freeze, we will not pretend it's real cost-of-living relief. To give taxpayers less than 1c off a pint, when we've seen mortgage holders pay $1,800 more a month since Labor came to power, quite simply is an insult.

We also won't pretend that this fixes the deeper problems in Australia's alcohol tax system. This two-year freeze is estimated to cost around $90 million over the forward estimates, less than two per cent of the $8 billion the Commonwealth collects from alcohol excise each year. This measure applies only to on-premises draught beer—nothing else. It doesn't apply to packaged beer, bottled spirits, wine or ready-to-go drink mixes. That means that most alcohol sold in Australia is completely untouched by this bill.

On-tap spirits and cocktails are far more likely than beer to be enjoyed by women and young people, but the government didn't even think to include these in the indexation freeze. That means that young women that prefer on-tap spirits and cocktails will continue to face higher taxes, while beer drinkers get some relief. That makes absolutely no sense.

There is nothing in this measure to address the $600 million alcohol tax gap identified by the tax office—money lost each year through illicit alcohol sales. That's revenue that should be going to hospitals, schools and roads, not into the pockets of criminal operators. It is exactly what we have seen in the illicit tobacco market, which the government has turned a blind eye to for so long. Right now more people are smoking again—we know that, with the wastewater data showing nicotine use rising. Revenue has collapsed. Tobacco excise went from $16.3 billion in 2019-20 to just $7.4 billion in 2025-26, a drop of more than half. Organised crime is the winner here. We see firebombs every other week. We see insurers refusing to cover businesses simply because they are beside a pop-up tobacco shop. It is one of the most serious policy failures in living memory, and we cannot afford to repeat that mistake with alcohol.

If we let the illicit alcohol trade expand unchecked, we could lose billions more in tax revenue, drive honest operators out of business and put public health and safety at risk. And let's face it: those criminal organisations have the infrastructure there, right now, through the illicit tobacco market. They don't need to set anything up. They just need the alcohol. Only yesterday I spoke with reputable operators who are seeing it starting to flow into our communities. We need to address this right now.

Australia's excise regime is showing its age. It's more than a century old. It has become a tangle of inconsistent rates and outdated definitions. It has been patched, amended and redefined, countless times, but never properly modernised. If we are serious about supporting local manufacturing and hospitality, we need to think beyond the next two years. We need a proper review of how alcohol excise works, what it's trying to achieve and how it can be fairer, simpler and more sustainable.

Leading up to the last election, the Nationals developed policy in relation to alcohol excise, and that policy was across the board. It looked at beer, it looked at spirits and it looked at brewers—small business, big business, on tap or bottled—because the reality is, right now, if you go out and buy a bottle of spirits, whether that's scotch or gin, the excise is over 60 per cent of the purchase of that bottle. Over two-thirds—that is what we are paying. It's over 25 per cent every time you buy a beer, whether that's a draught beer, whether it's in a bottle or whether it's on tap.

We developed that policy, which I was very proud of, and I put it out on social media. Somebody, a member of the public, said, 'What, you're going to save Australia one beer at a time?' My answer was yes—yes, we are—because, every time that business sells a beer that is cheaper, it puts more cashflow into that business, and that cashflow is where they reinvest into that business. What it means is they can keep that 18-year-old part-time or full-time worker, who's at TAFE doing a course so he or she can get an apprenticeship; they can stay employed. We will be saving Australia one beer at a time, because, if that person stays employed or the business is able to employ another person, that is good for the local economy. And, if that business grows, so does the community, because they don't just serve beer and alcohol; they sell meals, so they are getting produce from the local producers—that beef or the veggies. And then you think, 'Well, somebody's got to clean the place'—so the cleaner has a job and the cleaner can support his or her family, potentially sending kids to the local school. So, yes, one beer at a time will save a local community. It will save those people who work around the local pub.

We've seen, on countless occasions, small towns die because their local pub shut. It's a reality. It might not happen in the cities, but we're talking about regional and rural people, and that's who the Nationals look after. So, if you save regional and rural towns by one beer at a time, I'll wear that as a badge of honour every single day, because we know that over 97 per cent of small and medium businesses are in the regions. If one beer at a time saves the pub, saves the hairdresser, saves the butcher, saves the baker, saves the school and that regional town thrives, then Australia thrives—and you replicate that hundreds of times around the country—and I'll wear a badge of honour, selling one beer at a time.

But we have to reform the excise. It cannot be two years, switch the tap off and then go back to the old way, because that will not work. That will never work. And it's not fair on those mums and dads, generally, who own a pub out there, or small business owners like the flower group or David Richards with the Kempsey pubs. They put it all on the line. These aren't people who have been handed everything on a platter.

Mary Aldred (Monash, Liberal Party) Share this | Link to this | Hansard source

Small-business owners.

Pat Conaghan (Cowper, National Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

They are—thank you—small-business owners, who do more hours than I like to think of, and they deserve a break. I know that, when we put that policy out there, I was getting phone calls, text messages and emails saying, 'Thank you for thinking about us.' This is not about us making money; this is about us reinvesting into our communities to ensure we're here for the future, to ensure that we can spend that money on the Saints soccer team or the Rovers Cricket Club or a charity for cancer. This is what the pubs and clubs do, and so do the small brewers. They're small businesses. They're out there contributing to the economy of regional and rural communities, and, at the end of the day, the government coffers. Not only do we have an obligation to revisit this—and, again, we will support it; it is a fraction of what is required to ensure the longevity and sustainability of the hospitality industry.

On that note, this bill is a small and temporary step in the right direction. But Australians deserve more than small steps; they deserve a real plan to bring prices down, lower inflation and deliver tax relief.

Emma Comer (Petrie, Australian Labor Party) Share this | Link to this | Hansard source

The price of a cold beer has been rising, and our pubs and clubs are struggling. Labor always hops at the opportunity to support venues, workers and consumers. Local businesses poured their hearts out, and, to help them get ahead, we've introduced a freeze in the draught beer excise. Just like the bubbles in a freshly poured beer, Labor is rising to the occasion. The Excise Tariff Amendment (Draught Beer) Bill 2025 is not mid strength and frothy; it's full strength, perfect pour. This has been brewing for a while. Many venues are 'barley' surviving—forgive me! Much like the WA emu, we run at great speeds to support our hospitality industry. We give a XXXX about supporting small business. From the great northern Australia to Carlton to the Cascades in the bottom of Tassie, the draught beer excise will support everyone. The bill is 'lager' than life.

Constant price hikes leave a 'bitters' taste in the mouth. We're helping with the cost of living whether you buy one beer or Tooheys. If you don't support this bill, you don't have a keg to stand on. But, at the end of the day, beauty is in the eye of the beer holder. Don't feel 'Coopered' up; get out there and support your local business. Quench your thirst with a hard-earned cold beer.

In Queensland, the weather is heating up. As the temperatures rise, there is one thing on everyone's mind: a cold beer at the local pub. A beer culture has long been essential to the Australian social life, for catching up with mates, celebrations or a stop on the way home from work. The local pub or club is not just a place for drinking; it's part of our culture. Unfortunately, the price of a cold pint has been rapidly rising in the past years. The Albanese Labor government has introduced legislation to freeze indexation of excise and customs duty on draught beer for two years, a practical step that will deliver real relief for beer drinkers, brewers and local pubs right across Australia.

This is a win for small business and supporting venues that are the hearts of so many towns. It's a win for our pubs, clubs and hospitality workers. It's a measure that will help keep prices steady and give business owners some breathing room as they continue to manage rising costs. For decades, excise and customs duties on draught beer have been indexed to the consumer price index twice a year. This legislation will lock in a freeze. This is a commonsense measure, part of our government's broader plan to ease cost-of-living pressures on Australians and to help small businesses stay full strength.

Alongside this freeze, the government is delivering further tax relief for Australian distillers, brewers and wine producers. The annual excise remission cap for eligible alcohol manufacturers will increase from $350,000 to $400,000, and the wine equalisation tax producer rebate will rise to $400,000 from 1 July 2026. We know that every bit of relief matters. Whether it's a tax cut for every taxpayer, help with energy bills or support for local businesses, our government is doing everything we can to make life a bit easier. By freezing the indexation on draught beer excise and customs duty, we're taking pressures off pubs and brewers and helping sustain 160,000 jobs in the hospitality sector. This is about backing small businesses, protecting local jobs and strengthening the communities that bring Australians together.

Let's talk about who this bill really is for: the people in places behind every pour. Pubs and clubs have been under pressure, and any extra cost hurts. Across Australia, there are around 10,000 hospitality venues that serve draught beer. Around three-quarters of them are small businesses. Behind every tap and counter stands a small army, around 160,000 workers across the hospitality sector, pouring beers, cleaning glasses, greeting guests and making sure that their customers feel at home. Many of them are students, part-timers, parents or long-term locals whose livelihoods depend on the continued viability of these venues. When we talk about freezing the excise on draught beer, we're not just talking about economics or taxation; we're talking about protecting local jobs and giving small businesses a bit of breathing room. We're talking about keeping the doors open on venues that are often the heart and soul of their community: the home of trivia nights, charity raffles and community fundraisers.

Each of those 10,000 venues is more than a business. When we help them stay viable, we're helping keep 160,000 Australians employed. That's what this bill is about: giving our hospitality industry the fair go it deserves. By easing the tax burden on draught beer, this bill helps those 10,000 venues and 160,000 workers weather the rising costs and uncertainty. It means pubs and clubs can reinvest in their staff, upgrade equipment or simply keep the prices steady for their patrons. This bill means that more money stays in local communities instead of being lost to compounding costs. It's about preserving spaces that bring people together, because, when small businesses stay open, workers stay employed and locals stay connected. It's not just good policy; it's good community.

I want to give a shout-out to some of the great local venues in Petrie that keep our community buzzing. There's the Scarborough Bowls Club, where the post-game schooners always hit the spot. Over at the Redcliffe Leagues Club, home to the mighty Dolphins, you can grab a cheap meal with your membership card; I always keep mine on hand. The Bramble Bay Bowls Club is always full of locals enjoying barefoot bowls, and Scarborough Brewery is a place to enjoy a weekend pint. It's always a treat to have a drink at the Aspley Memorial Bowls Club—who also just opened a brand new green—and, of course, the Mango Hill Tavern remains a local favourite. These are the venues where stories are shared, friendships are made and the community comes alive.

Freezing the draught beer excise isn't just about saving a few dollars; it's about backing the places that bring people together every single week. The next time you head to your local for a cold beer, you are less likely to feel the sting of another price hike. The Albanese government's decision to hold off on increasing the tax on beer poured from the tap will help keep prices steadier, protect local jobs and make it a little easier for everyone enjoying a night out. You can buy a round without copping too much damage to the hip pocket. This is about slowing the constant creep in prices that Australians have been facing on every bill, every grocery store visit and every drink purchased.

For years, the excise on draught beer has gone up every February and August, quietly adding cents to every pint. Those few cents might not sound like much, but over time they add up. For venues under pressure, that often meant passing on the cost to consumers. By pausing those increases for two years, the government is giving both venues and customers a fair go. For beer drinkers, that means more certainty when you order at the bar. Your favourite schooner, pint or jug is less likely to go up in price. It's a small but meaningful way to ease the cost-of-living pressures that hit home in everyday moments.

But it's not just about the money; it's about preserving the ritual that brings Australians together. When prices climb too high, that experience becomes less accessible. By freezing the indexation, we're helping make sure that catching up with friends over a draught beer remains part of Australian life and not a luxury. In short, this is policy that people can feel in their wallets, in their communities and in everyday moments that make life in Australia a little bit better.

The freeze on the draught beer excise and customs duty is just one part of the Albanese Labor government's broader plan to make life easier for Australians. It sits alongside a range of measures designed to ease cost-of-living pressures, boost disposable income and keep our economy strong. Across the country, people are feeling the pinch. Families are managing higher grocery bills and rents, and small businesses are balancing tighter margins. In times like this, we need practical, responsible steps that make a real difference in everyday life. That's exactly what this government is doing.

By freezing the indexation on draught beer excise for two years, Labor is preventing another automatic increase in cost for pubs, clubs and breweries. These are costs that often flow straight through to consumers. For the everyday Australian, it means one less price rise at the bar. It means the local pub can keep prices steady instead of passing on another increase. It's a small, sensible way of taking pressure off while helping local businesses stay afloat.

But this measure is part of something bigger. Labor's plan for cost-of-living relief is comprehensive and targeted, focused on areas that matter to most families, workers and small businesses. We've delivered tax cuts for every taxpayer so Australians are keeping more of what they earn. We've provided energy bill relief to help households manage rising power costs. We've made child care more affordable, we've cut the cost of medicines and we're building more affordable housing to give more Australians security and stability. When we put all this together, it adds up to real tangible support. It's about balance and doing what's right for households today while keeping our economy in good shape for tomorrow.

Freezing the draught beer excise is one of those smaller targeted actions that shows how we can make smart decisions to support both people and businesses. We want people to enjoy a meal out without worrying about prices creeping up again and to know their local pub can keep its doors open without cutting staff. That's what this freeze helps protect—the simple pleasures and social connections that mean so much to so many Australians.

This is what good Labor policy looks like—responsible economic management combined with fairness and compassion. We're backing working Australians, supporting small business and ensuring everyone gets a fair go. Whether it's keeping the lights on, keeping the fridge full or keeping a pint affordable, the message is the same: Labor is focused on easing the pressure, supporting communities and helping Australians get ahead. Let's take a moment to raise our metaphorical glasses to the pubs, the bowls clubs and the local bartenders. Cheers to an affordable cold beer on a hot day. Without further ado, I'll conclude my contribution to this debate and tap out!

Monique Ryan (Kooyong, Independent) Share this | Link to this | Hansard source

I rise to speak in support of the Excise Tariff Amendment (Draught Beer) Bill 2025 but to suggest some means by which it could be improved. Australians continue to live in the grip of an ongoing, severe cost-of-living crisis. Tomorrow, the Reserve Bank is expected to keep an anticipated cash rate cut on hold after inflation exceeded recent forecasts. That has been driven by rising costs for basic necessities like housing, food and energy.

The rising cost of living has been a challenge which has confronted millions of Australians for some years now, with inflation having risen so sharply since our economy bounced back from the COVID induced recession. As the inflation dragon has roared through our economy, the Albanese government has been at pains to tell us that there are limits on what it can control: the independent RBA sets the cash rate; Woolworths and Coles have become two of the world's most profitable supermarkets thanks to sharp rises in the cost of essential foods; and, on the east coast of Australia, domestic gas prices have surged since they were aligned with the global price for polluting gas.

The price of most grocery items is set by the markets but the government is not a powerless bystander in this space. There are some everyday items in which the government does have a hand in price-setting, and one of those is the price of a draught beer. That's right—the price of a cold one, a pint, a schooner or a pot. The average price of draught beer has gone up by over 30 per cent in the last three years. This rise, which is considerably higher than that of inflation, has occurred in the middle of our cost-of-living crisis. Contributing to that rising cost is the automatic indexation of the beer excise every six months, which effectively forces price increases well ahead of the annual CPI. What that means is that, while households continue to face the rising costs of food, of housing and of energy, the humble beer has become almost a luxury item. There is some good news, though, for Australia's beer lovers. It is within this government's power to act on this particular cost-of-living issue.

So it is pleasing to see the government's commitment to freezing indexation on draught beer, but it's not clear why we have to freeze it for just the two years. The impact of high inflation on the excise indexation over the last few years has left the price of draught beer simply too high. I'd make a case that we should stop automatically indexing the beer excise. This freeze should be permanent. A permanent cap on the indexation of draught beer excise will help millions of consumers tackle cost-of-living pressures in their homes. Right now, it's more expensive to enjoy a beer in my home city of Melbourne than it is in Tokyo, in New York or in London. Melbourne can't be the world's most livable city if you can't afford a beer while you live there.

A permanent excise cap will also support Australia's emerging craft beer industry. Despite the rapid very recent growth of small independent brewers, the draught beer market in Australia remains saturated by big international brands. In fact, roughly 85 per cent of the Australian beer market is controlled by two foreign owned companies. I think it would surprise many pub goers to learn that household names like VB, Carlton Draught and XXXX are owned by large Japanese companies. Asahi owns CUB, 4 Pines, Balter, Yak Ales, Matilda Bay and Mountain Goat. Another Japanese brewer, Kirin, owns Lion, and hence it owns Little Creatures, Hahn, James Boag, Tooheys, James Squire, Stone & Wood and White Rabbit. Despite what many people think, these are not, or are no longer, Australian brands, and it might well be an issue for the ACCC to look at, because what I'm hearing from constituents and from people who own bars and have a strong interest in this issue within the electorate of Kooyong is that independent brewers face real challenges with the rising cost of ingredients and of energy.

They're also dealing with softening consumer demand, and they're dealing with stiff competition from large retailers like Coles, which are increasingly selling their own home-brand beers in a way which largely mimics craft styles. Many small brewers for which excise increases were deferred during the struggles and the hard times of COVID are now struggling to deal with that debt in what has proven to be a persistently tough economic climate. In that craft beer industry, beer sales support Australian workers and local economies. The independent beer sector employs more than 8,000 people directly, and many brewers also contribute to hospitality and tourism in the way that they've designed and run their businesses. A permanent cap on the draught beer excise would be of great benefit not just to the hundreds of local brewers who employ thousands of Australians but also to the communities in which they live. It would be a much bigger benefit to them than it would be to multinational beer corporations.

Deputy Speaker Georganas, to paraphrase a famous old beer ad which both you and I are, sadly, old enough to remember, a hard earned thirst needs a big cold beer, and the best cold beer is one that you can actually afford. On behalf of Australia's 600 craft brewers, and on behalf of millions of Australian beer drinkers, I commend this bill to the House.

Tom French (Moore, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak in support of the Customs Tariff Amendment (Draught Beer) Bill 2025, which accompanies the Excise Tariff Amendment (Draught Beer) Bill 2025. This is a bill that, if you forgive the pun, goes straight to the taproot of Australia's hospitality culture. This bill does something simple, sensible and overdue. It pauses the indexation of the customs duty on draught beer for two years, from 1 August 2025 to 1 August 2027. It means that, for the first time in a long while, pubs, clubs and breweries across the country will get a breather from the automatic six-monthly CPI hikes that have been hitting them like clockwork every February and August.

I know this might seem like a small change in the grand scheme of tax law, but for venues that are at the heart of our communities, for the small-business owners, for the shift workers, for the kitchen staff and for the locals who rely on them, it matters a lot. And I can say that with a bit of personal authority, because before I stood in this place I ran a pub myself. I know what it's like to watch your margins shrink every time you get an excise notice in your inbox. I know the pain of seeing the price of a pint edge up, not because of better wages or better hops but because of automatic indexation tied to the CPI.

This bill gives some breathing space to those who've been gasping for it. This is a measured, temporary and responsible pause for an industry that's been doing it tough. In Moore, that means pubs and clubs, from Joondalup to Mullaloo and from Kingsley to Duncraig—family-run venues, where staff know your name, where the kitchen serves a proper parmi and where community sport teams celebrate a win on a Saturday night.

Paddy Malone's in Joondalup, Whitford's Brewing Company and Carine Glades Tavern—they're not just places to have a drink; they're employers, they're training grounds, they sponsor the local footy club, they host charity raffles and they give apprentices a start. When you help a pub stay afloat, you're helping a whole ecosystem of workers and suppliers: farmers, truck drivers, musicians and hospitality staff. When those venues are stable, the whole economy benefits.

This bill doesn't touch packaged beer or retail sales. It's specifically about draught beer—the stuff poured from kegs into a glass. That's deliberate. The benefit goes to where it's needed, not into supermarket aisles or bottle shop chains. In the 2025-26 budget, this was part of the Supporting the Hospitality and Alcohol Producers Package—a recognition that, while Australia's economy is resilient, the hospitality sector still carries the scars of the pandemic and cost-of-living pressures. We know that, for many pubs, even a one per cent increase in excise adds thousands of dollars a year to their costs. When those hikes come twice a year, it's hard to plan. This measure says that for the next two years you can plan with certainty. You can lock in prices, pay your staff and get through the next couple of winters without an unexpected hit.

The Treasury has estimated a cost to revenue of around $95 million over five years. That's not loose change, but in budget terms it's a modest and targeted investment, one that supports tens of thousands of small businesses, hundreds of thousands of jobs, and the tourism economy that depends on them. It's a structural, not temporary, improvement in fairness. When the indexation resumes, it resumes from a frozen rate, so pubs don't face a double whammy down the track.

Now there will be those opposite who say they support the bill in principle, but they do wish they thought of it first—

Pat Conaghan (Cowper, National Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

We did. The Nationals did.

Tom French (Moore, Australian Labor Party) Share this | Link to this | Hansard source

To that I say, 'That's fine,' because this is exactly the kind of measure that should have bipartisan support. It's practical, it's proportionate and it's temporary. It helps the people who get up early, work hard and keep our communities humming.

This is not about some sweeping deregulation of alcohol taxes. It doesn't undo the public health settings that have kept Australians safer. In fact, this pause is not anticipated to increase consumption. Prices aren't going down; they're just not going up every six months. We're not talking about cheaper beer. We're talking about stability for businesses. As a government we believe in responsible enjoyment, fair taxation and vibrant communities. This bill sits squarely in that tradition.

Some have questioned whether pausing beer excise might conflict with health obligations under international law. But this bill clearly meets every test of legitimacy, connection and proportionality. This bill meets all three tests. It serves a legitimate objective, it is rationally connected to that objective and it's proportionate. The objective is to support small businesses and regional tourism, not promote consumption. In other words, it's a measure to keep pubs open, not to pour more pints.

In Moore, you can see why this matters. In Joondalup, small bars and local breweries are part of the city's new energy, creating jobs and giving young chefs, baristas and brewers a start. In Mullaloo and Sorrento, the local surf clubs rely on social functions and bar takings to fund lifesaving equipment. In Duncraig, Padbury and North Beach, community clubs are places where people gather not just to drink but to connect, to celebrate milestones, to mourn losses and to raise money for good causes. When those venues struggle, the ripple effect hits everyone, from the brewer who supplies the kegs to the musician who plays on a Friday night. As someone who once ran a pub, I know how easily margins get eaten up—by electricity, wages, insurance and, yes, excise. The margin on a pint is thin at the best of times. For many operators it's the difference between keeping on that extra staff member for a Sunday shift and cutting hours.

So when the government takes a modest step to hold the excise steady, it's not about handouts; it's about fairness and breathing space. The Australian brewing industry has evolved dramatically in the past two decades. We've seen an explosion of independent brewers, from small local operations to national names. Many of them operate on tight margins to compete with international giants that can spread costs across multiple markets. A two-year freeze helps level the playing field just a little. It gives small operators time to invest in quality, in staff training and in sustainability, like switching to renewable energy, local ingredients or recyclable packaging. It also supports regional tourism that flows from our pub and brewing culture. People don't just visit Margaret River or the Swan Valley for the wine; they go for the whole experience: the food, the music and the community atmosphere. When local hospitality thrives, local tourism does, too.

This measure fits within a broader economic story: a government that's managing inflation carefully while supporting small business. In the same budget that delivered cost-of-living relief for households, energy rebates and tax cuts for workers, we also found room to support the industries that keep our main streets alive, because you can't separate economic policy from community life. You can't claim to be for small business if you ignore the local pub that's been part of your suburb for more than 30 years. When those doors close, they rarely reopen.

So while this bill might sound like a technical tweak to the Customs Tariff Act 1995, its effect is deeply human. It keeps people in work, it keeps venues viable and it keeps communities connected. For those who enjoy the fine print, yes, this amendment inserts a new section into the Customs Tariff Act. It defines a CPI draught beer rate and sets out that the indexation factor will be treated as one on the four specified dates. In plain terms, it hits 'pause' on the automatic tax rises for draught beer—no hidden fine print, just the two-year freeze. It aligns with the corresponding section 6L of the Excise Tariff Act 1921, ensuring parity between imported and locally produced draught beer. It applies retrospectively from 1 August 2025, the date on which the Customs Tariff Proposal (No. 1) 2025 took effect in accordance with parliamentary convention. The retrospective application is wholly beneficial. Nobody is out of pocket and no duty payer is disadvantaged.

Let's be honest: this pause won't change the world; it won't double the profit margin of every pub in the country. But it will make a difference at the margins, where most small businesses live and die. It gives stability for two years, which, in the life of a small business, is a lifetime. And, when indexation resumes, it resumes at the paused rate, not with the accumulated catch-up that wipes out that benefit. That's good design. It means that, even after the two-year window closes, pubs will still be better off than they otherwise would have been.

There's something symbolic about this measure. Australia's pubs are not just commercial enterprises; they're civic spaces. They host wakes, weddings, trivia nights and community fundraisers. They're where locals gather after a footy match or after a long week at work. In that sense, supporting pubs is supporting social infrastructure. When I ran my own pub, I saw that firsthand. A pub isn't successful because of its margins; it's successful because the people feel like they belong there. Belonging matters, especially in times like these when too many people feel disconnected. So, yes, this bill has an economic purpose, but it also has a social one: to keep our communities connected through the places that have always brought us together.

Some critics will say: 'Why just draught beer? Why not spirits or wine?' The answer is straightforward. Draught beer is unique. It's served in licensed venues with responsible service obligations, it's a major employer of hospitality workers, and it's a segment most exposed to the automatic CPI indexation that makes forward planning difficult.

Others will say it's tokenistic. To them I'd say: tell that to the publican who's been trying to make payroll while juggling rising costs on everything from utilities to insurance. For that person, a two-year pause on hikes isn't tokenistic; it's tangible relief. And for the staff who keep those venues running—bar staff, kitchen hands, cleaners and security guards—it's the difference between uncertainty and stability. To everyone in the industry—the brewers, the bartenders, the chefs, the cleaners and the delivery drivers—this bill is for you. It says your work matters. It says the government sees the pressure you're under, and it says we're willing to act pragmatically, not ideologically, to give you a fair go.

In the end, this bill is about more than beer. It's about backing local businesses, easing pressure on working Australians and keeping doors open on the places that bind our communities together. It's about recognising that when we talk about the economy we're really talking about people—their livelihoods, their relationships and the small joys that make life worth living. As someone who has pulled a few pints, I can tell you this: there's no better measure of a community's health than the sound of laughter at the local pub on a Friday night. This bill helps keep that sound alive. I say cheers to that. I commend the bills to the House.

Tim Wilson (Goldstein, Liberal Party, Shadow Minister for Small Business) Share this | Link to this | Hansard source

I will start by saying what a wonderful speech that was from the federal member for Moore. Finally, we have a member of the Labor Party who isn't a neo-puritan. Finally, we have a member of the Labor Party who actually believes that people have a right to have fun and live their lives as they see fit, who respects their capacity to do so, and who actually believes there is a place in society for people to have the freedom to choose how to live their lives. It was one of the most refreshing and enjoyable speeches I've heard in this chamber in the many years I've been here. I say this with great affection. It was one of the most passionate speeches I've heard him give. So I say: more of this. More of this principle of freedom to choose. Now just put it into absolutely everything else in the legislative agenda put forward! But I know I'm going to be disappointed.

I consider this to be the high-water mark of the member for Moore's career. He has reached his Everest. Sadly, I doubt it's going to go much further up from here, but that's okay. I nonetheless want to congratulate him, because he's right. When you've got so many people in communities around the country catching up at a pub and enjoying a beer on their terms, good luck to them. It's their life and their choice. Of course, it's great to have people be sociable. But we also need to remind ourselves that you don't need to have alcohol to be sociable. Even the member for Fremantle, with his puritan lifestyle, is sometimes sociable as well, and there are other members on the other side of the chamber who are also sociable despite not necessarily choosing their way through to conversation. I know I'm casting aspersions on the member, and if it offends him I will, on this occasion, withdraw. I'm happy to do so.

But I do support this Excise Tariff Amendment (Draught Beer) Bill 2025 and the Customs Tariff Amendment (Draught Beer) Bill 2025. We support these bills for simple reasons. It's because we fully believe (1) in lower taxes, (2) in the freedom to choose, and (3) in the idea that it's good to be able to give reprieve, as the shadow assistant minister for financial services believes himself in saying that the coalition actively pursued exactly the same sorts of measures in the lead-up to the election. We fundamentally believe that we shouldn't be punitive; we shouldn't seek to chase down or to hunt or to haunt people for simply going about living their lives. It's very different from, for instance, the approach the current government is taking in other areas of excise regulation, where they're active participants in fuelling organised crime, criminal gangs and the firebombing of small businesses—something that is utterly insane, but that is exactly where we are right now.

So, I'm glad to see, again, that the member for Moore, the member for Fremantle and other members understand that perhaps, sometimes, just increasing taxes in perpetuity isn't necessarily the best policy answer. Sometimes it can have an unintended consequence too.

Anyway, let's get off the firebombing of small businesses and the fuelling of organised criminal gangs by the Commonwealth government, and let's look at breweries and who will benefit from this legislation. Let's go to the good electorate of Goldstein. In the electorate of Goldstein, we actually have, believe it or not, in or around the vicinity, quite a few local breweries. We always want to say cheers people who are backing themselves to be successful. In Cheltenham, there's Amber Brewery. It's a business that began as a dream shared between two mates, Kieron Hewitt and Alex Kutlajevs, who turned their passion for quality beer into a thriving local brewery. In Moorabbin, we've got Bad Shepherd Brewing Co., which I've been to. It was founded by husband-and-wife team Dereck and Diti Hales. Dereck started out brewing award-winning home brews while Diti, with her love of quality dining, American-style barbeque and expertise in brand marketing, helped turn that passion into a genuine community venue. Also in Moorabbin we've got Stomping Ground brewery, which was established in 2016 by Steve Jeffares, Guy Greenstone and Justin Joiner, after their success with a local tap house in St Kilda. In less than a decade, Stomping Ground has grown into Australia's champion large independent brewery. And we have 2 Brothers Brewery, another great local success story of hard work.

Of course, it's not just those breweries, where they produce the quality liquid amber ale, it's also the local pubs that which play such an important part of the social infrastructure of our community. I say this because it's one of the things that people perhaps don't know about my personal background: my parents were publicans. I grew up in pubs. I share the member for Moore's passion for pubs as part of the social infrastructure of the community. They bring people together. They bring people on their terms, whether it's for their social engagements for sporting clubs or whether it's just somewhere to go, after they knock off after a long day, to be able to find their friends. We live in a free society. Everybody finds their own place and their own home in their own different way. That's why we fully respect the important role that pubs play.

I know that Ferg from the AHA will, of course, love to know that he and his industry are always in our thoughts and prayers. I saw him on Saturday, and the first thing he talked to me about was beer excise. It's not really that surprising. He's very consistent on that and always has an ask, but that's okay because we believe in the freedom to choose, and he knows that I will always stand up for pubs because they play such an important part.

It doesn't matter which pub it is. The Sandy, in Sandringham, is important one. One of my favourites is the McKinnon Hotel. Not only is the food outstanding but the pulled beer is fantastic. Hotel Brighton is where I spent way too many nights during my campaign. After long days—particularly after the summer sun—I hit Hotel Brighton. To the good folks at Hotel Brighton: keep up the great work. Believe it or not, the pub where my parents met was once called Hotel Central. It is now called the Half Moon, and it is a place that I regularly visit in Church Street, Brighton. The Brighton Beach Hotel is a regular for many people, particularly after Saturday afternoon footy. There is Hotel New Bay in Brighton as well—G'day to Cieran—the Bentleigh Social and the Camden Hotel in Caulfield South. These, of course, are not just places to drink but the heart of the community—places of connection, friendship and belonging. But these businesses—

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

You seem to have an encyclopaedic knowledge of them; it's really good!

Tim Wilson (Goldstein, Liberal Party, Shadow Minister for Small Business) Share this | Link to this | Hansard source

Deputy Speaker Freelander, you're interrupting and suggesting, somehow, that I have an encyclopaedic knowledge of the local pubs in my electorate in the sense that I should be embarrassed or ashamed.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

Not at all.

Tim Wilson (Goldstein, Liberal Party, Shadow Minister for Small Business) Share this | Link to this | Hansard source

I am sorry, Deputy Speaker. I am immensely proud. I am immensely proud of the role that pubs play in the community. There used to be more; my only devastation is that many of them went by the wayside due to property prices and where they became unviable businesses in comparison to being converted like the old Bowie pub.

The current excise regime, as we all know, is unsustainable. Brewers are charged the excise, but pubs wear it in the price of kegs. Of course, when you go to tap that keg, you want not just the freshness of the beer but the freshness, of course, of making sure that the tax rate is not punitive. Customers increasingly buy from bottle shops instead because pubs simply can't compete. That is not good for pubs. Margins have collapsed, and many business owners are operating on the edge. We do not want pubs being unsuccessful. We will all pay a significant price as a society when pubs don't succeed. We need them to be part of the social infrastructure of our community.

This bill offers only two years of relief. It's a short-term measure, no doubt, because the government just wants it for a period so they can then try and renew it in the lead-up to the next election rather than turning around and saying to pubs, 'We're going to deliver a long-term commitment of support.' I would hope, one day, that we get to a position where pubs know they can go ahead with confidence. They have so many other challenges—being able to get labour let alone the cost of labour, let alone the management of labour. The Labor Party makes it so impossible to manage, hire, employ and pay people properly. Then they've got to be part of selling a good product—of course, that's up to them—but also be in an environment and create the atmosphere where people want to get along and be convivial.

Tax, as often with so-called sin products, pays a huge contribution to the overall price. We already pay some of the highest excise on beer in the world, and then we add 10 per cent GST on the top—the tax on the tax. Last year alone, beer drinkers paid almost $2.4 billion in taxes to the federal government, meanwhile costs of goods, energy and wages keep rising. It's inflation on inflation on inflation, and it's all being paid for by you, the Australian people. It's not being paid for by the Speaker or the Deputy Speaker—you never know what his habits might be—but by the Australian people. Publicans are afraid to lift prices because they can't absorb the increases. They know that it's a challenge. Their margins are tight, their costs are rising and they don't want to pass them on because they still need people to come in and spend. If they don't, they know they'll go home. If they go home, they don't take a cut. Their profits fall, staff hours are cut and fewer young people gain skills in hospitality. That's where pubs play such an important role as well.

It's like so many other small businesses. Small businesses, so often, are the gateway for young Australians to get their first job, to skill up, to learn discipline and to learn practice to be able to then go on and become full participants in the Australian economy. That's why we back small business every step of the way in the Liberal Party. We understand not just that it's Australians backing themselves to be successful and to go on and offer economic opportunity and security for their families but, in addition to that, that it's the gateway for the next generation of Australians to get their first job, to learn and to grow. And, of course, if they earn an income and position themselves, one day they too may be in a position to own their own small business and write themselves into the economic success story of this great nation.

We want to make sure that we ease the pressure on pubs. We understand why they're important to our community and we understand why they're particularly important to the Goldstein community. We want to take the pressure off them. That's certainly the message we've been getting from the local pubs and breweries in Goldstein. Kieron Hewitt from Amber Brewery and St Andrews brewery has made this point. How can you run a business when the government changes the rules every six months to three years? It's completely destroyed the industry thriving three or four years ago. They've had to line up to be able to expand into non-beer products to be able to survive. With the excise tax coming in at the same time as interest rates, people just don't have the money and can't afford to go out anymore. Government needs a commercial reality check if it wants to understand how to fix these problems, and breweries, of course, are the ones who are being hit. Whether customers have noticed or responded to the price increases really comes down to competition. Of course, we know that there are large brewers internationally who are flooding the market to try and make sure that they can compete and take the biggest chunk of what is actually a diminishing market share. So that leaves a lot of the Australian brewers doing the best they can to compete, but the government has largely undercut them by increasing taxes and made it harder for them to be successful. The reality is we need a serious fix now that makes sure that we provide a long-term solution. So, while I welcome this bill, the reality is my natural sympathy will always be with lower taxes; it will always be with lower taxes, and it doesn't matter what it is, my position, Deputy Speaker Freelander and Member for Fremantle, it will always be for lower—

The member for Fremantle is interjecting. He was making a remark that I wasn't in the last parliament. That is why he should be so happy I am back in this chamber, because it will mean the lower tax nirvana of the future has begun.

Similar sentiments were expressed by Dereck Hales from Bad Shepherd, who said how, importantly, beer tax remains the single largest barrier they have in their industry and for private Australian owned businesses. It increases every single year and the gap between excise and the WET scheme for wine has become nearly laughable.

Of course, this is one of the big challenges with alcohol taxation overall. We know that one of my other preferred tipples, at different stages, depending on the time of day, is gin. As the member for Fremantle clearly—but my reputation precedes me.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

When do you start that? Breakfast?

Josh Wilson (Fremantle, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Link to this | Hansard source

One of our first conversations was about your collection.

Tim Wilson (Goldstein, Liberal Party, Shadow Minister for Small Business) Share this | Link to this | Hansard source

And so, one of the biggest problems now with the gin and spirits industry is the scale of the excise. The distilled spirits industry in this country is literally going broke under this government. There are so many distilleries that have collapsed, closed or have had to be sold off to foreign interests. This is not a good outcome. Australian craft spirits, like Australian craft beer, should be an industry—a success—that goes on, employs and is connected directly to tourism and economic opportunity. This government is killing these industries needlessly. And tax is the key driver of it, because it creates huge problems for financing and huge problems for being able to manage the capacity to employ people. It also becomes the biggest barrier for starting a new business, when people can see a pathway to be able to produce a product to be successful and they want to back themselves. I know the member for Monash agrees with me on that.

We understand why this bill's important, but the industry is saying they're not sure why it's limited. They don't understand why it's time stamped and what they want is a longer commitment of certainty. All I hope for is that, in our considerations over the next two years—of course, this goes to the coalition and to the government—we give the industry long-term certainty around how we make sure to reduce the overall burden of tax so that we can have a spirits, beer and alcohol industry that we can be proud of—one that is not just successful in selling to Australians but selling successfully to the world.

Alison Byrnes (Cunningham, Australian Labor Party) Share this | Link to this | Hansard source

I am absolutely delighted to rise today in support of the Customs Tariff Amendment (Draught Beer) Bill 2025, which accompanies the Excise Tariff Amendment (Draught Beer) Bill 2025. I am really excited about this bill for so many reasons. As I'm the co-chair of the Parliamentary Friends of Brewing with my good friend, the member for Nicholls, it is probably not all that surprising. The Illawarra has a bustling and ever-expanding craft beer industry growing our tourism industry, delighting locals and visitors alike and working together to support the growing network of local brewers. But one of the big reasons is that this is a win for regional communities like mine in the Illawarra.

I want to share a little story about why this bill excites me so much. Like so many of us here in this place, I spend many mornings standing at local train stations talking with commuters and local people about what matters most to them. There was one gentleman that really stood out to me. He used to drop in and see me when I was at Thirroul train station, one of our major commuting hubs, because he wanted to tell me how hard it had been getting together with his mates. This group of local blokes would get together on a Friday night down at the local bowlo in Thirroul. They are pensioners, and it was one of the treats they gave themselves, to have a bit of fun and keep in touch with each other—a group of blokes who really needed that weekly beer to check in on each other and keep them going for another week. But their beer was getting more and more expensive, and they were having to wind things back. Not everyone could come every week, and it was getting tougher to stay in touch. This might sound small, but, to this group of local Thirroul blokes, that Friday beer could not be important. I could see the impact it was having, and I was really grateful that this lovely gentleman was persistent in bringing this to my attention.

So, when discussion about the beer excise came up, I shared this story with the Treasurer to let him know the impact the cost of beer was having on groups of pensioners in my electorate, because this is absolutely not an isolated group of blokes. That social interaction is so important to so many people across Australia. One of the best texts I have ever received from my good friend the Treasurer was to let me know that we were freezing the beer excise. I knew straightaway that there was a group of blokes down at Thirroul bowlo who would be cheering. I want to thank the Treasurer not only for listening to this story but for taking it seriously and taking action—just one more piece of cost-of-living support from the Albanese government.

This is what these bills are about—a targeted, measured change to pause indexation on draught beer excise and excise-equivalent customs duties for two years. For 40 years, beer excise indexation hasn't changed, with two annual excise increases in line with CPI each year. The pressure on small businesses has been growing. Pubs, clubs and breweries are part of what makes Australian culture. They bring us together, and in some cases they hold us together during good times and bad. In the regions in particular, they are community hubs, and they are important for our economy. The measure applies only to containers between eight and 48 litres, those commonly used in pubs and clubs, and containers over 48 litres, used in larger hospitality venues, helping to ensure this is targeted at keeping operating costs stable for our hospitality venues while maintaining our broader alcohol excise framework. This is sensible, practical and responsible, and that is what our government is about.

In my work as co-chair of the Parliamentary Friends of Brewing, I have worked closely with the Brewers Association of Australia. A 100 per cent member funded association, they have worked hard, along with the Australian Hotels Association and others, to see this issue given the attention that it deserves, and they have worked with the government on a practical solution.

Around 10,000 hospitality venues across Australia will directly benefit from this change. Around 75 per cent of those are small businesses, and small businesses have been doing it tough. Across the supply chain, the brewing industry contributes $17 billion every year to our economy—that's agriculture, transport, logistics, hospitality, retail and tourism—and it creates about 100,000 full-time-equivalent jobs. In fact, there are 6,591 full-time-equivalent jobs linked directly to brewing. In New South Wales alone, brewing supports more than 28,000 full-time-equivalent jobs across the supply chain and adds around $4.2 million to our economy. It's significant. Without support, jobs are at risk, communities are at risk and the economy will be left worse off.

These bills also support Australian brewers, particularly those small and independent producers supplying draught beer to local venues. The government has announced tax relief for Australia's distillers, brewers and wine producers. Currently, brewers and distillers get a full remission of any excise paid, up to $350,000 each year. We will increase the excise remission cap to $400,000 for all eligible manufacturers, and we will also increase the wine equalisation tax producer rebate cap to $400,000 from 1 July 2026. In my electorate in the Illawarra, I know this is going to make a huge difference, because this local industry is absolutely booming. Independent breweries alone contribute $1.18 million to the Australian economy every year.

Back home, the Illawarra Brewing Company started brewing local beer in 2011, taking over from the Five Islands Brewing Company, which began in 2001. At the time, it was the only one—a small father-and-son outfit run by Garry and Dave McGrath that supplied beer to the Illawarra Brewery, a popular local venue. In 2012, they won five awards at the Australian International Beer Awards, and they became the first pioneers of craft beer in the Illawarra.

Flash forward to 2025, and now we have eight local brewing companies: Resin Brewing, the Barrel Shepherd, Principle Brewing, Reub Goldberg Brewing, Dusty Lizard Brewing, Five Barrel Brewing, First Light Brewing Co and Seeker Brewing. We also have the South Coast Ale Trail and the Wollongong Brewers Association—local companies banding together to change the face of beer in Wollongong and to catapult this booming local industry. And it's working. Local bars, pubs, clubs and restaurants are getting on board, fighting to become stockists of locally made beer.

And it is really good beer, at that. Seeker Brewing in Unanderra took home six silver and two bronze medals at this year's Australian International Beer Awards—their latest haul in an impressive line-up of awards, having won multiple golds in 2022 and 2023. Their specialty, hop-focused brewing, makes them one of the country's top producers in this style.

Five Barrel Brewing was the Illawarra's second brewery, and it was named the state's best new brewery in 2016. Five Barrel is owned by Phillip O'Shea and his sister Lucy Timpano, with help from their parents and other family members as well, making Five Barrel a true family organisation. Since 2016, they have kept moving to greater and greater heights. Following in the footsteps of Dave McGrath from the Illawarra Brewing Company, Phil and Lucy wanted to turn the Gong from a VB town to a craft beer town, and I think you could say they've had a lot of success.

Local brewers are focusing on shifting attitudes to drinking from drink-to-drink culture to drink-to-enjoy culture, by educating patrons on what craft beer is all about. In an exciting new venture, the Bus of Hoppiness rolls into town this coming weekend—a bus tour on a travelling loop of five local breweries: Seeker, Five Barrel, First Light, Dusty Lizard and Principle, helping to shepherd beer lovers and novices alike around the Illawarra's exciting craft beer culture, all thanks to the new Wollongong Brewers Association. I think this is the other important point: that craft beer is actually about doing beer differently—doing it responsibly and doing it for enjoyment. They are a community helping and supporting each other to give the Illawarra just one more reason to be the best region in Australia. And I certainly agree with that. That is why I am so thrilled that the Albanese government is supporting this industry.

We are also supporting businesses, like the Headlands hotel, the Illawarra Hotel, Howlin' Wolf Bar, the Prince, His Boy Elroy, Steamers Bar and Grill and so many others, who are getting on board and stocking local Illawarra beers on tap, because supporting small businesses and supporting local people to deal with the cost of living is No. 1 on our priority list. Manufacturing, hospitality, tourism—they run the regions, they feed our national economy, and they are vital. We want to support our small local brewers to compete against the large multinational producers. We want to ensure that our beer and hospitality market has diversity and healthy competition. We're keeping it measured, we're keeping it responsible and we are keeping it in line with what will help these important small businesses right now, protecting the jobs that they create, protecting the economic value they drive and protecting our Australian culture, by responsibly enjoying our pubs and clubs—just like that lovely gentleman and his mates down at the Thirroul bowlo.

I am proud to be part of a government that knows our values, knows what is important to protect and knows what can be adjusted for the benefit of all Australians. I will keep doing what I can to ensure that local voices are heard in these important conversations. I will keep doing what I can to ensure our local beer industry can continue to thrive. We have so many people employed in manufacturing. I will keep doing what I can to support my community with real and impactful cost-of-living relief, just like we have done by investing in Medicare, making home solar batteries 30 per cent cheaper, cutting student debt by 20 per cent, increasing the minimum wage, increasing the super guarantee and paid parental leave, boosting the pension, cutting taxes, cutting energy bills and helping more people to be able to afford a home. Always, we have given cost-of-living relief to local people.

All of this support has been done at the same time that headline inflation has come down, our economy has stabilised, unemployment has been low and real wages have grown. It is sensible economic management by a government that knows which levers to press and when, balancing support of our community with support of our economy. Our plan is working, and we will keep at it.

Again, I want to thank the Treasurer and the Assistant Treasurer for these bills. I want to thank all of those industry bodies that worked constructively with us through this process. I'm looking forward to another term as co-chair of the Parliamentary Friends of Brewing. I'll again be working closely with the Brewers Association of Australia, the Independent Brewers Association, my co-chair, the member for Nicholls, as we keep bringing the spotlight on Australia's brewing and live music industries to the Australian parliament. I encourage everyone who hasn't yet tasted the amazing craft beer that the Illawarra has to offer to come and visit the South Coast Ale Trail. You won't be disappointed. I commend this bill to the House.

David Batt (Hinkler, Liberal National Party) Share this | Link to this | Hansard source

I rise to speak to the Excise Tariff Amendment (Draught Beer) Bill 2025 and the Customs Tariff Amendment (Draught Beer) Bill 2025. My electorate of Hinkler is famous all over Australia and indeed the world for producing some of our nation's finest beverages. The iconic Bundaberg rum, Kalki Moon distillery, the Spirit Collective in Hervey Bay, the legendary Bundaberg ginger beer and, of course, many craft breweries are making a name for themselves, such as 384 North Brewing in Bundaberg and Cauldron Brewing in Hervey Bay. The bill to freeze the indexation on draft beer excise for two years is welcome. But, when it comes to tax relief, many of the makers behind the brands that put my region of Hinkler on the map have been left wanting, and they are hurting, under Labor. If those opposite were serious about addressing the cost of living and the deeper issues surrounding the alcohol excise system, they would have delivered more. The Labor government should have advocated for a comprehensive review of the alcohol system. An ice-cold beer is good, but, when there's more froth than there is amber liquid in your schooner, you'd expect better. That's what the industry wants too.

I recently met with the Chair of Diageo, Sir John Manzoni, and his Australasian team when they visited here in Canberra. Diageo is a global leader in premium drinks, and they look after the Bundaberg rum brand and many others. While they are supportive of the tax pause, the freeze applies only to on-premise draught beer, not bottled beer, packaged drinks or wine. So, yes, Diageo, like other industry leaders, support the pause. But Labor should have Treasury conducting a comprehensive review of the alcohol excise system. Extending the draught beer excise freeze to tap spirits is being advocated for by Spirits and Cocktails Australia and supported by the Australian Hotels Association, the Queensland Hotels Association, Clubs Queensland and Clubs Australia and the Night Time Industries Association. Together, they are seeking to extend the two-year freeze on draught beer excise to tap spirits served on premises in hospitality venues. I support that as well. Tap spirits would include bulk containers of spirits and lower-alcohol premixed drinks designed to be connected to pressurised or pump delivery systems. It is not proposed to extend to standard bottles of full-strength spirits or to individual ready-to-drink bottles or cans.

The industry is proposing amending the Customs Tariff Amendment (Draught Beer) Bill 2025 to introduce two new subitems to the excise tariff schedule. This is a small increase to the existing draft beer freeze, which the government expects will cost only $95 million over five years. Tap spirits are a growing part of the product mix for pubs, clubs and small bars. Extending the freeze to tap spirits would provide cost-of-living relief beyond customers who choose to drink beer. In my home state of Queensland, the Queensland Hotels Association has thanked us for backing the freeze on draught beer excise. Yes, it is a win for local pubs, hardworking hospitality workers and every Aussie who enjoys a cold one without needing a small loan. Freezing the biannual indexation of alcohol excise for two years from 1 August this year means beer is cheaper. But let's be honest; while a reprieve, it's hardly noticeable. This commitment to freeze the tax was always matched by the coalition, because we know that clubs, pubs and hospitality workers need a break, and hardworking Aussies deserve to be able to afford a cold one. The reality is that this freeze delivers less than 1c of relief per pint.

There's a well-known pub that sits on the Bruce Highway in Childers, in the heart of my electorate of Hinkler. The historic Grand hotel has been owned and run by the Corliss family since the mid-1990s. Dan Corliss, a former police officer, has worked on and off in the family pub over the past 30 years and took on the official role as publican in 2024—something I've always wanted to do. He's quickly taken this country pub in Childers to an international audience, thanks to what's called the Mongrel Menu, featuring some extraordinary food challenges. The widespread interest in these contests is epic. The menu features one-kilogram local steaks and big burgers. Videos of people attempting these challenges generate around 7½ million views on social media every month. Dan has 25 staff, and he's proud of what he's achieved, but clearly Dan and his team need to be creative. While the freeze on tap beer is a reprieve, it's just that. While Dan is grateful, this freeze is only a pause. Publican Dan's family has been in the hospitality game for three decades, and he tells me the one thing that he's always experienced, since the beginning, is the guarantee of rising tax on beer. It's a constant rise, twice a year, year on year—everyone paying more for a beer. It's not good for his family pub and not good for his customers.

Dan knows this freeze is good, but it's not going far enough to absorb the high electricity prices and the ever-increasing costs that the suppliers and brewers are passing on. That's where the Nationals plan for a cheaper, better and fairer energy future comes in. Australians can't afford Labor's net zero. Families are paying too much. Jobs are being lost. Forests and farmland are being destroyed. Labor's net zero has failed. The Nationals energy and climate plan is cheaper. We will lower energy prices first, use all of our resources and abandon the commitment to net zero. All carbon taxes and restrictions should be removed. The Nationals energy and climate plan is better because we will protect our local environment through local community action such as waterway protection, land restoration and soil carbon. We will ensure that our national security is not compromised. The Nationals energy and climate plan is fairer because we will reduce emissions in line with comparable nations, not ahead of them. We will ensure that costs are distributed fairly, not concentrated on regional Australia. We need to bring common sense back to solving climate change.

In a cost-of-living crisis, net zero is adding to power bills and sending Australian jobs overseas. Even worse, it's damaging the natural environment, when there's a fairer way to reduce emissions. We need to take the pressure off family power bills, protect local jobs and do our fair share to reduce emissions. Let's reduce the costs associated with keeping your beer cold. Let's cut the energy expense so that makers of your favourite drop don't have to pass it on.

I don't want to forget the smaller brewers. Power prices are up. Gas prices are sky high. Rent and wages are high. The cost of ingredients to make craft beers is making it tough for these relatively small businesses to make money. The freeze in question is not relevant to most small brewers, as they are already exempt from excise duty on a certain volume of their production through a remission scheme, but these breweries still need more cost relief. They have to compete with the bigger brands, and their overheads, like electricity and wages, are making it very tough.

My electorate of Hinkler's array of award-winning makers, brewers and distillers serve up more than amber ales. When it comes to top-tasing tipples, Hinkler leads the pack. The bill to freeze the indexation of draught beer excise for two years is a good thing, but we must expand the scope and focus beyond the beer and onto spirits. The Nationals Federal Council at the weekend moved a motion supporting an ongoing freeze of the federal alcohol excise tax and a reduction of alcohol tax across the board to a fair and equitable level at licensed venues.

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. Mortgage holders are paying $1,800 more a month, with 12 rate rises and only three cuts since Labor came to power. Everyday Australian are footing the bill for Labor's spending spree, in their tax returns, their electricity bills, their mortgage payments and their growing difficulty in finding a job. Labor has no strategy to address the government spending spree fuelling inflation. There is no sign of a broader excise reform conversation, just piecemeal freezes. Labor must reintroduce quantifiable budget rules. Australians deserve better. The government's two strategies, debt and taxes, are not a plan for prosperity. The coalition's priority is clear: stop the spending spree and start growing the economic pie so Australians can get ahead again. The coalition welcomes any relief for pubs, clubs and beer drinkers, but this needs to be more than a patchwork fix in the face of high inflation.

This measure will pause indexation of the beer excise for two years, but it does nothing about inflation in the cost of everything. A 1c cheaper pint is not effective cost-of-living-relief. The Excise Tariff Amendment (Draught Beer) Bill 2025 and Customs Tariff Amendment (Draught Beer) Bill 2025 are small wins for beer drinkers, brewers and every pub, club and hospitality business across Hinkler and the nation. But more must be done for Australia's hospitality and alcohol industries. This measure is worth just $90 million over the forward estimates. That's tiny compared to the $8 billion collected annually from alcohol taxes by this government. These businesses have gone through COVID, record high inflation and endless cost-of-living pressures.

Let's support the ongoing viability and growth of our local industries and Australian jobs. If Labor is serious about the cost of living, it must stop the spending spree and start growing the economic pie. Let's do more for country publicans like Dan at the Grand Hotel Childers and for the craft breweries in Hervey Bay and Bundy. The people of my electorate of Hinkler, like those all over Australia, deserve to enjoy an affordable drink of their choosing. And the pubs, clubs and hospitality workers—and those right throughout the industry and across the supply chain—need more than a reprieve. They need ongoing support, and I will make sure that they continue to get mine.

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to 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!

Michael McCormack (Riverina, National Party) Share this | Link to this | Hansard source

Labor's change with the Excise Tariff Amendment (Draught Beer) Bill 2025 and the associated bill, and the carry-on that they are putting to this debate, is little more than a political stunt. It doesn't address the cost-of-living crisis that Labor has forced upon everyday ordinary Australians. Those everyday ordinary Australians love a beer. They love a punt. Tomorrow is Melbourne Cup Day. I know there are some people in this place from the Greens political party who say 'nup' to the Cup. I say: 'Have a drink. Go, Buckaroo!'

Julian Hill (Bruce, Australian Labor Party, Assistant Minister for Citizenship, Customs and Multicultural Affairs) Share this | Link to this | Hansard source

It's a hot tip!

Michael McCormack (Riverina, National Party) Share this | Link to this | Hansard source

It is very much a hot tip; thank you, Member for Bruce. Get on it! If it wins, I hope it can alleviate some of—I won't say 'the debt crisis that you've forced upon us'. I always say, 'Gamble responsibly.' Don't ever gamble more than you can afford to lose. But what Labor is saying in this particular bill is ignoring the deeper issues with the alcohol excise system. I heard the member for McEwen say that, particularly for regional areas, our pubs are the heart and soul of our communities—or words to that effect. I very much agree with my learned friend in that regard. They are, and they're doing it tough. For generations since European settlement, pubs have been the lifeblood of those communities. Indeed, in early pioneering towns in the regions, often the pub was there first. The church might have come a little later, and then the racetrack. It was probably in about that order, or maybe the church and the racetrack were around the other way. But the pub was certainly first—the little local inn where they sold beer. It was very much the community centre and the focus of conversation and that is the way it, perhaps, should be.

In recent times in the Riverina we've had a few pubs doing it tough. The Royal Hotel was New South Wales's most popular licensed hotel name in 2025, but the Royal Hotel at Grong Grong—although it's now in the electorate of Farrer now, just outside the Riverina—recently looked as though it was going to shut until the local community got behind it. A local community has done that not just for Grong Grong but also for Illabo, where they secured the Longhorn Hotel. It was a community effort of a Riverina village coming together to save its watering hole. Not only there: they've done it at Henty as well.

These little taverns and bars can't afford to be lost in modernisation. Perhaps the licensee takes out the poker machines—the very valuable licence to print money—and takes them to Sydney, and takes with the licence with them. The pub shuts. Where do people go then, to have a bet, a beer or a conversation? It's good for mental health—it just is. It's the focal point of the community. Quite often, they're the sponsor of the local sporting teams. They're there, and they support so much and everything that is great about country living.

Fiona Hamilton, who was the Illabo Cooperative chairperson, described the pub there as the heartbeat of the village. This is what she had to say, and it is at the core of the reason why these hotels are so important: 'We all rely on the hotel for essential services including banking, bill payment and postage, staple pantry and food items, newspapers, snacks, coffee and a break for travellers, overnight accommodation for farm and rail workers and, most importantly, a place in which the whole community can enjoy each other's company over a beer and a meal.' The future of the hotel had been uncertain. The co-op came about and people chipped in and made sure that the pub remained open. Good on that community! It's in the Junee shire, and it makes such a difference to have the pub on the Olympic Highway. It includes accommodation, a post office and a small general store. It is open for business and trading. That little community has done very, very well to keep the pub open just like they have at Grong Grong and at Henty, and that's an important thing.

Across Australia, there are 4,337 hotels. They're all very well represented by Stephen Ferguson. He is someone who is a great advocate for the pubs, for what they do, for the role they play and for sensible drinking and gambling. Because that's what pubs are about. There are 731 taverns, 261 inns, 162 bars—there is a difference between all these watering holes—75 pubs and 562 others with names such as saloon, vault, GPO Sydney and, would you believe, the Cuckoo's Perch. That's according to the website pubrooms.com.au. Australia has eight different licensing jurisdictions. Why? I don't know—that's according to the website. There are many and varied categories of licensees. There are hotels, taverns, bars, off-licences, roadhouses, licensed restaurants and clubs. Those clubs that said Mr Ferguson represents benefit from his wisdom and his wise counsel. When he trawls the halls of parliament looking for the best deal for clubs, we should listen to him because he's a sensible, practical, pragmatic person. If the government were serious about the issues with the alcohol excise system, it would have advocated for a comprehensive review of the alcohol excise system, but it hasn't. They just haven't.

We welcome relief for pubs, clubs and beer drinkers. We do. We won't stand in the way of a cut to the beer tax, and that's obviously going to be something welcomed. I know the Prime Minister likes to tell everybody that he's got his own beer named after him, and good on Albo. I've actually had a sip of that particular brown ale, and it's pretty good, but let's be clear. This freeze delivers less than 1c of relief per pint. I'll say that again: less than 1c cent of relief per pint. That's enough to give Labor the headline of a cut to the beer tax. It's enough to give the PM a picture in the Tele or the Herald Sun, Australia's two most widely read newspapers, but it's just a headline. If Labor were serious about it, they'd have Treasury conduct a comprehensive review of the entire alcohol excise system, and I know that would be welcomed by those beer drinkers who, quite frankly, are paying too much for their beer.

I'll tell you the other thing that the government could do while they're at it: look into the money that they're losing through illegal cigarettes. I'm not a smoker myself. I never have been. I never will be. I know and I appreciate that Dr Freelander, who is in the chair, would very much have worries if the number of smokers went up, as I would too, because we see all the disadvantages of that for the health system and for the smokers themselves. But smokers are being forced, because of a cost-of-living crisis, to get their cigarettes under the counter through chop chop, through these illegal smokes which are absolutely coming into this nation in droves. Our state police forces are almost overwhelmed with the numbers that they are pulling up, particularly on the highways. It's the modus operandi for illegal trading for motorcycle gangs. Insurance companies are now not even wanting to insure shops next door to legal tobacco sellers, let alone the illegal tobacco sellers themselves, and this is a real problem because it's actually costing millions, perhaps even billions, in excise.

Back onto the subject at hand—we're talking about beer excise here—the measure will pause indexation of the beer excise for a couple of years, but it does nothing about inflation in the cost of everything, including beer. Just the other day, inflation smashed through the Reserve Bank of Australia's target band. This means more expensive mortgages and dearer groceries, and that's a sad reality. The cause of high inflation is, as we know, Labor's reckless government spending. But what that government spending is not doing is investing in roads in regional Australia. Unfortunately, the Minister for Infrastructure, Transport, Regional Development and Local Government—who is from a regional area, that being Ballarat—and the Minister for Regional Development, Local Government and Territories—and she's from Eden-Monaro—are not even looking at what they can do as far as making sure the right infrastructure spending is occurring in regional Australia. It's regional Australia that is hurting the most thanks to this government's reckless lack of interest and care for those people who do not live in the bright city lights of our capital cities.

This freeze applies only to on-premises draught beer, not bottled beer, packaged drinks or wine. Again, if Labor were serious about this issue, it would be looking at all parts of the excise system, not just selected, certain parts. Listen to Stephen Ferguson. He won't be here tomorrow. I'm sure he'll be at the Melbourne Cup—half his luck. I won't even talk—

Julian Hill (Bruce, Australian Labor Party, Assistant Minister for Citizenship, Customs and Multicultural Affairs) Share this | Link to this | Hansard source

What was the horse again?

Michael McCormack (Riverina, National Party) Share this | Link to this | Hansard source

Buckaroo. I'm saying Buckaroo, just for the record, for the member for Bruce—only because he interjected on me. Get on it.

But the cause of high inflation is, as I say, the reckless government spending. It's running at more than four times the rate of the economy.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

Order!

Debate interrupted.