One Nation supports scrapping tax on beer and spirits
Pauline Hanson’s One Nation has pledged to help scrap the excise tax on beer and spirits served in pubs.
The support for the axing of the tax comes as consumer costs continue to rise.
Any alleviation of the tax would be a boost for the struggling hospitality issue:
Hanson has said the tax is partly to blame for driving Australians away from pubs and restaurants.
One Nation senator Malcolm Roberts is launching a 3,000km road trip through the Outback, stopping at pubs along the way to promote the party’s policies. A key focus of the tour will be advocating for the removal of alcohol tax on drinks sold in licensed venues.
“In many outback towns, the pubs are in danger of becoming extinct, with the cost of overheads forcing them to shut their doors,” Roberts said.
‘One Nation’s pub drive will shine a light on struggling towns that most politicians will never visit their entire time in parliament.
“The outback and the bush are often silent victims of government policies. More than most communities, the outback feels increases to the cost of transport yet politicians in Canberra often do not hear these voices crying out for acknowledgment of the pain Canberra is inflicting.
“Outback pubs are often the hub for the entire community, acting as much more than just a watering hole. One Nation wants to give venues a shot in the arm to keep their doors open as a place to see your mates.”
The Australian government unveiled Saturday a package of tax relief measures aimed at supporting the nation's distillers, brewers, and wine producers. The move, however, has drawn criticism for overlooking the financial pressures faced by consumers.
The government will raise the excise remission cap for eligible alcohol manufacturers from $350,000 to $400,000 annually, benefiting both brewers and distillers. A similar increase will apply to the Wine Equalisation Tax (WET) producer rebate, also rising to $400,000.
Beyond tax relief, the Australian Trade and Investment Commission (Austrade) will bolster export support for these industries. This includes access to trade missions, expert advice, and networking opportunities to facilitate growth in key overseas markets, particularly in Southeast Asia.
The tax breaks are projected to cost the government $70 million in revenue over five years, starting in 2024-25.
While producers are celebrating the announcement, the Australian Hotels Association (AHA) has voiced concerns that the measures fail to address the affordability of drinks for everyday Australians. The AHA argues that while the government's initiative will benefit manufacturers, it offers no relief for patrons struggling with the rising cost of a drink at the pub.
AHA National CEO Stephen Ferguson said, “Consumers will still be faced with the Government’s twice-yearly excise increases, with pubs being forced to pass the tax increase on to consumers.
“The 84th increase is still due on 1 August this year. Excise is a lazy, hidden tax and Australians continue to pay the third highest excise in the world. Pubs have no control over excise and are stuck in the middle having to pass the tax on to ordinary Australians.”
The AHA is reiterating its call for a freeze on excise tax for beverages sold in licensed venues, including pubs, clubs, bars, and restaurants.
Jonathan Jackson, 24th February 2025
