Now lawMoney & Tax Introduced in the House of Representatives, 08 Oct 2025

Draught beer tax is now frozen for two years

This law stops the rise in the tax on beer poured from kegs at pubs, clubs and venues. That tax usually goes up twice a year. Now it stays put until August 2027. The government says it helps venues with costs. It costs the budget $95 million over five years.

Official name: Excise Tariff Amendment (Draught Beer) Bill 2025

Who it affects

• Pubs, clubs and venues that sell alcohol: The tax part of what they pay for kegs of beer stays the same for two years.
• Brewers of keg beer: The tax they pay on beer in kegs does not rise on the four usual dates.
• Importers of keg beer: The matching tax on keg beer from overseas is frozen too, by a second law.
• People who drink at the pub: The government does not expect venues to cut prices. But the tax will not push prices up for two years.

Beer tax rises twice yearly

Beer made in Australia has a special tax on it, called excise. Beer from overseas pays a matching tax at the same rate. That one is called customs duty.

These tax rates usually rise twice a year, on 1 February and 1 August. They go up in line with the Consumer Price Index. That is a measure of how fast prices are rising.

The government says high living costs have hit pubs, clubs and other venues that sell alcohol. In the 2025-26 Budget, its yearly money plan, it promised to pause the rises on keg beer for two years.

This bill is the Excise Tariff Amendment (Draught Beer) Bill 2025. Tariff here means a list of tax rates. Draught beer means beer on tap. The bill covers beer made here. A second bill came with it. That one does the same for beer from overseas, so both are treated alike.

Two-year draught beer tax freeze

The law adds a new part, section 6L, to the law that sets the beer tax rates. It says the price rise will not happen on four dates. They are 1 August 2025, 1 February 2026, 1 August 2026 and 1 February 2027.

So the tax on keg beer stays at the rate it was on 1 February 2025 for two years.

Draught beer here means beer in big containers. It covers kegs of 8 to 48 litres that connect to a gas or pump system. It also covers any single container over 48 litres. Beer in cans and bottles is not covered.

Say you run a country pub that pours 20 kegs a week. Under the old rules, the tax in each keg would rise every six months. Under this law, that part of your keg bill stays flat until August 2027.

When the freeze ends

Rises start again on 1 August 2027. They will start from the frozen rate of 1 February 2025.

The rate will not jump to make up for the four missed rises. The government's notes on the bill say this avoids a big rise at the end of the pause. It also means the tax on keg beer stays lower than it would have been, for good.

Backdated to August 2025

The freeze really began on 1 August 2025, before this bill passed. The government did this with a special notice in the House of Representatives, Parliament's main house, on 24 July 2025. That kind of notice lets a new tax rate apply while Parliament works on the law.

That stopgap only protects tax officers for 12 months. It ran out on 24 July 2026. This bill writes the freeze into the law itself. It makes it apply from 1 August 2025.

So the law is backdated to an earlier date. The government's notes say that is fine here because it only helps the people who pay the tax.

Health questions

Alcohol taxes can change how much people drink. The government's notes looked at the right to good health.

They say the change is meant to help businesses and tourism. They do not expect people to drink more. They also say pubs are not expected to cut prices for drinkers. The aim is to keep venue costs steady.

Start date

The freeze applies from 1 August 2025.

The government brought the bill to the House of Representatives on 8 October 2025. The House passed it on 4 February 2026 after several days of debate. The Senate, Parliament's second house, passed it on 1 April 2026.

The Governor-General, who stands in for the King, signed it into law on 8 April 2026. It is now Act number 36 of 2026, its official law number.

How they voted

Its journey through Parliament

Official sources

• Bill page on aph.gov.au
• Text of the bill
• Explanatory memorandum

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