Disappointment as ‘discriminatory’ tax freeze ignores the spirits industry

Australia’s spirits industry has hit out at the Albanese Government’s freeze on draught beer excise saying the move discriminates against spirits producers, drinkers and the entire distilling supply chain.

Spirits & Cocktails Australia Chief Executive Greg Holland said the Government has ignored calls for sensible reform of Australia’s alcohol tax, adding that there was no policy rationale to support a freeze on draught beer alone.

“The tax on spirits is already three times higher than it is on beer. Freezing draught beer excise alone is discriminatory in every sense – it favours beer drinkers over spirit drinkers, brewers over distillers, and pubs over bars,” Holland said.

“These recommendations were supported by a bipartisan parliamentary committee in its recent report on the food and beverage manufacturing inquiry.

“Yet the Government has baulked at the alcohol tax reform it knows is desperately needed by the 700 distilleries operating across Australia, 50 per cent of them in regional areas.”

Australian Distillers Association Chief Executive Paul McLeay said the Albanese Government’s favouritism of the beer sector was disappointing.

“This policy has put a dampener on last week’s announcement of a $50,000 increase to the remission,” he said.

“We’ve spent the past year advocating for the industry’s opportunities for growth, including our potential to become a $1bn export industry within the decade.

“The Government has so far overlooked this economic opportunity, so we hope there are further policy announcements that will enable us to realise this potential.”

While the spirits industry is understandably disappointed with the announcement, the Australian Hotels Association, Independent Brewers Association and Clubs Australia have all welcomed the news.