The Federal Labor Government will freeze the indexation on draught beer excise for two years, in a win for beer drinkers, brewers and hospitality businesses.

Indexation is applied twice a year under arrangements in place for decades. While the February indexation accounted for a small percentage of the cost of a pint, this change will help pubs and their patrons.

We will freeze indexation on draught beer for two years from the next indexation date of August 2025.

This will take pressure off the price of a beer poured in pubs, clubs and other venues, supporting businesses, regional tourism and customers across Australia.

The Government will consult with the sector on the implementation of this measure.

This announcement comes on top of new tax relief announced last week 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 alcohol manufacturers and we will also increase the Wine Equalisation Tax producer rebate cap to $400,000 from July 1 2026.

Quotes attributable to Treasurer Dr Jim Chalmers:

"This is a modest change but will help take a little bit of the pressure off beer drinkers, brewers and bars."

Quotes attributable to Federal Member for Robertson, Dr Gordon Reid MP:

“I welcome the news that the Federal Labor Government will freeze the draught beer exercise.

“As a government, we want to support our regional distilleries, brewers, and alcohol manufacturers.

“This relief will help businesses on the Central Coast and help assist our hospitality industry”, Dr Reid said.

ENDS