Barista in the pub pouring beer drink into glass for the customer.
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Australians are set to enjoy cheaper beer as legislation to freeze biannual tax hike was introduced to parliament today.

Under the current decades-old system, an indexation is applied to the beer excise in February and August each year in line with inflation.

But the continued increases have brought up the prices of a schooner or pint to about $15, prompting calls from brewers, bars and patrons to put a pause to the controversial indexation.

Barista in the pub pouring beer drink into glass for the customer.
Australians are set to enjoy cheaper beer as legislation to freeze biannual tax hike was introduced to parliament. (iStock)

Prime Minister Anthony Albanese campaigned for this year’s federal election on the promise to freeze the indexation on the excise for two years starting from August.

He also said he would increase the excise remission cap to $400,000 for manufacturers and increase the wine equalisation tax producer rebate cap to $400,000 from July 1 next year.

At the time, he said this was a “common sense measure” that was a win for drinkers, pubs and brewers.

Treasurer Jim Chalmers touted the freeze as a “modest change” that would take the pressure off the industry and Australians. 

The changes come as Australia’s monthly spend on wine and beer jumped this year compared to 2024, according to June data by CanstarBlue.

Prime Minister Anthony Albanese meets with patrons during a visit to the Gage Roads Freo Brewery
Prime Minister Anthony Albanese during a visit to the Gage Roads Freo Brewery ahead of the federal election. (Alex Ellinghausen)

The monthly spend for beer rose by 30 per cent from $76 to $99 while wine rose by 17 per cent from $66 to $77. 

Meanwhile, the average price of beer increased by 4.5 per cent in the 12 months to March.

The rising costs have also taken a toll on the industry, which saw dozens of breweries and pubs shut down shop from last year. 

Industry bodies, which have long been campaigning for a freeze, welcomed the government following through on its election promise. 

Australian Hotels Association National President David Canny said the legislation prevented beer from becoming a “luxury item”.

“It’s a win for common-sense in the middle of a cost-of-living crisis,” he said.

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