The Albanese Government’s freeze on draught beer excise discriminates against spirits producers, drinkers and the entire distilling supply chain, the spirits industry says.

Spirits & Cocktails Australia chief executive Greg Holland said 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,” he said.

Holland said the Government has effectively ignored the spirits industry’s calls for sensible alcohol tax reform.

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

“Yet the Government has baulked at the alcohol tax reform it knows is desperately needed by the 700 distilleries operating across Australia, 50% 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 $1 billion 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.”