Debate Erupts Over Beer Tax Break, Sparking Claims of a ‘Broken System

During a parliamentary session, a question was raised about whether he would assume responsibility for the Reserve Bank’s recent interest rate increase. He responded by referencing an earlier debate on a cost-of-living measure, adding, “Those opposite can’t even agree on cheaper beer, remarkably.”

The proposed legislation aims to temporarily halt the biannual increase in beer taxes for two years. However, this relief doesn’t extend to spirits enthusiasts or those who prefer bottled beer.

The Nationals pushed for the tax freeze to include tap spirits, highlighting that the current proposal excludes Australians who aren’t keen on lager.

In a parliamentary discussion, Member for Lyne, Alison Penfold, noted, “Look, I’m not a big beer drinker and, frankly, a lot of women are not big beer drinkers.”

“Look, I’m not a big beer drinker and, frankly, a lot of women are not big beer drinkers,” Member for Lyne Alison Penfold argued in parliament.

“So whilst this is something that speaks to the tradies and to many people across the electorate, to be quite frank, women tend to drink more tap spirits.

“Certainly, there are some local producers in my electorate looking at tap spirits and low-carb options as well for those of us who are very conscious of our diets. 

“We need to do something that’s far more comprehensive, far more far-reaching, far more inclusive of all Australians and their preferences when it comes to having a drink at a pub or a club.”

Party members, who were sitting on the crossbench for the first time in decades following their second split from the Liberal Party since last year’s election, also called for a wholesale review of the country’s alcohol tax system.

“It’s really nothing more than crumbs from the Treasurer’s table; it will deliver less than a cent per pint, and it’s not good enough. It doesn’t fix the system. It doesn’t deal with the fundamentals,” Member for Cowper Pat Conaghan argued.

“Only a thorough review of our alcohol tax settings can do that. For years now, on both sides of politics there has been a broad acceptance that Australia’s alcohol tax system is broken. 

“It is overly complex. It taxes similar products in wildly different ways.”

But Labor used its huge majority to vote down the changes as Assistant Treasurer Dr Daniel Mulino said the amendments were well intentioned but would cost the government a lot more.

“What we’re proposing here is a round of beers for our pubs and clubs on the government,” he said.

“It’s a gesture of goodwill to acknowledge the hard work of our hospitality industry—but it’s a measure within our means. 

“Some members are asking us to reach instead to the top shelf for that round and some are going further and asking us to put our card behind the bar indefinitely.”

Teal MP Monique Ryan’s bid to widen the freeze to all craft beer – arguing the current bill would mostly benefit big multinationals – and other amendments to make the freeze indefinite or “axe the tax” completely also failed.

Australian Hotels Association chief executive Stephen Ferguson thanked the PM for the move.

“We know that there is a strong desire to make sure that all parts of the brewing and distilling industries can share in excise relief – but it’s also clear the freeze on draught beer is an important first step and should be welcomed,” he said, in a statement.

Night Time Industries Association chief executive Mick Gibb said Australia already had the highest spirits taxes outside of Scandinavia and the automatic hike would impact venues.

“Spirits are taxed more than beer or wine, and the tax increases every six months,” he said, in a statement.

“This latest rise will mean around $32 of the price of a standard 700mL bottle of gin or whisky is tax going straight to the Government.” 

The bill, which will take effect from in August if passed, will now go to the Senate, where independent Tasmanian senator Tammy Tyrrell will again try to make the freeze indefinite.

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