In a recent shift, the Albanese Labor Government announced a two-year freeze on the draught beer excise, a move that comes after decades of biannual tax hikes, with the decision expected to relieve some financial pressure on pubs and their patrons. It comes into effect from August 2025 and is anticipated to benefit regional tourism and local businesses throughout the country.
PHOTO: Jindabyne Brewing is owned by local entrepreneur Karl Veiss CREDIT: Jindabyne Brewing
Prime Minister Anthony Albanese emphasised the government’s commitment to fostering a thriving landscape for small and medium enterprises, stating, “Freezing the excise on draught beer is a common sense measure that is good for beer drinkers, good for brewers and good for pubs.”
However, not everyone shares the enthusiasm for this policy. Karl Veiss, owner of Jindabyne Brewing, expressed concerns about the larger issues affecting Australia’s brewing industry. According to Mr Veiss, while a freeze on excise is a step forward, it does little to alleviate the pressing challenges faced by smaller breweries.
Karl argues that the focus should be on providing “cheap, reliable energy” to benefit all businesses, pointing out, “The excise doesn’t go far enough; we need cheap, reliable energy that would help everyone out, across the board.”
PHOTO: Karl Veiss brews craft beer in Jindabyne, providing jobs to many locals.
Due to escalating energy costs, Jindabyne Brewing has had to reduce shifts, impacting local employment and economic activity in the community, despite the installation of solar panels at the brewery.
With Australia’s energy policies increasingly prioritising environmental concerns, Mr Veiss criticises the lack of cost-effectiveness and its impact on business profitability. He said, “If you maintain a base stock of energy supply for all Australians before exporting it all, or concentrating too heavily on renewables, you can then bring the costs down.”
PHOTO: Energy costs for small businesses can impact profitability.
“Business has been steady, our sales year on year are very consistent, we’re not down on sales, like a lot of other businesses are, but what is hurting, is there’s no profitability left because every month there’s a new bill that goes up.”
“We’ve had to let go of six shifts per week, which is someone full-time, two casuals in a regional town. So I don’t employ those people, and I just do the extra work because I can’t afford it.”
“If people aren’t worried about their power bills, they’re going to go out, they’re going to spend more money, businesses manufacture more, and in turn more jobs are created.”
The Brewers Association of Australia welcomed the excise freeze and acknowledged the positive impact on both brewers and beer drinkers.
CEO John Preston praised the government’s decision, seeing it as a necessary intervention after years of steep beer tax escalations.
“After more than 40 years of twice-yearly beer tax increases, which has given Australians the third highest taxed beer in the world, we welcome the Prime Minister’s decision to step in.”
As the government plans to consult further with the sector, the brewing community remains hopeful for more comprehensive measures to support small and regional businesses.