AUSTRALIA | Calls for the freeze excise on draught beer to be extended to tap spirits to provide fairer cost-of-living relief across establishments.
Spirits & Cocktails Australia (SCA) has welcomed the Albanese Government’s decision to freeze excise on draught beer but is calling for the measure to be extended to include tap spirits, arguing the policy should deliver fairer cost-of-living relief across hospitality venues.
SCA said it has been developing a proposal since the beer freeze was announced, urging Government to include tap spirits served in pubs, bars and clubs. Tap spirits include bulk-format spirits and premixed drinks that are delivered through pressurised or pump systems, rather than standard bottles or individual ready-to-drink products.
SCA Executive Director Steven Fanner said excluding tap spirits from the excise freeze created an uneven outcome for hospitality operators and consumers.
“The spirits industry supports this cost-of-living response,” Fanner said. “Every MP who has spoken on these Bills has referenced the positive impact a freeze will have on jobs and the hospitality sector. However, many patrons in venues are now disadvantaged by a policy that only applies to beer.”
He said tap spirits are an increasingly important part of bar offerings nationwide, with spirits now accounting for a significant share of alcohol consumption.
“For every three beer drinkers, there are two people choosing spirits,” Fanner said, citing Australian Institute of Health and Welfare data.
“Those consumers continue to face excise increases every six months.”
Spirits remain the most heavily taxed alcohol category in Australia, with the latest excise rise lifting tax on a standard 700mL bottle of spirits to around $30.
Industry estimates suggest extending the freeze would add approximately $5 million per year to the policy, on top of the Government’s projected $95 million cost over five years. SCA argues this incremental investment would deliver broad and immediate relief to hospitality businesses and their customers.
SCA also referenced comments made by the Assistant Treasurer when announcing the beer freeze, which highlighted the importance of pubs and hospitality venues to community life.
“These principles should apply to all customers buying drinks at the bar, not just beer drinkers,” Fanner said.
SCA is urging a minor amendment to the Excise Tariff Amendment (Draught Beer) Bill 2025 to include tap spirits, enabling the pause in excise indexation to apply across all draught alcohol in hospitality venues.
“With a modest change, the Government can ensure equitable treatment across the bar and deliver meaningful support to Australian venues,” Fanner said.
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