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For the first time in 40 years, the excise tax for draught beer did not automatically increase.

The IBA appreciates the Government delivering on an election promise but we cannot shy away from the fact that while this is a necessary step – it is just a first step that will have only a moderate impact for independent breweries.

Government must directly invest in the independent brewing sector.

With 83% of the draught beer taps in Australia being contracted to two foreign owned multinationals – the freeze on draught overwhelmingly benefits those companies.

This pause did not extend to packaged beer. So the cost of a can of beer just went up. Making hosting friends for a barbeque potentially more expensive.

We are grateful that Indepenent MPs Nicolette Boele and Zali Steggall both advocated for Australian owned independent breweries.

See below some of Nicolette Boele’s comments in parliament, shared across social media.

Inequity with wine continues

The freeze also does nothing to address the systemic unfairness that gives preferential treatment to the wine industry. The tax on wine has not had twice yearly automatic CPI indexed taxation increases – while the beer tax went up 84 times consequtively.

In addition to that tax benefit, the Government both co-matches funding for Wine Australia and in the past year contributed $14.6 million dollars directly in other programs.

Government have NEVER directly invested a dollar in the independent brewing sector despite its significant economic contribution. With at least 80 brewery closures over the past three years it is beyond time for Government to support the breweries with even a fraction of the money it gives to wine.

Big Spirits wants government help to take more indie beer taps

Much of the media coverage of the freeze has been about the Spirits and Cocktails Association crying poor that spirits on tap should also have their excise frozen. Again, we should be clear who Spirits and Cocktails are seeking to benefit – their members are overwhelmingly massive foreign owned spirits companies.

Spirits aren’t taking a tap away from a foreign-owned multinational rather they are pushing high sugar flavoured ethanol onto one of the few remaining for independent brewing taps.

Beer is the adult beverage of moderation, our industry has been one of the leading contributors to the rise of low and no-alcohol products in Australia. Government should have a policy that nudges consumers towards lower alcohol products.

Freezing the draught spirits tax would further incentivse pubs and clubs to give away an indie beer tap and offer consumers a higher alcohol less moderate choice.