Australia govt pledges temporary beer tax freeze as election looms

Australian Prime Minister Anthony Albanese said on Saturday that his government would temporarily halt tax hikes on draught beer, amid sagging popularity for the governing Labor Party ahead of a general election due by May.

Australia is one of the world’s wealthiest countries per capita and one of its highest-spending on alcohol per capita. Its centre-left government, lagging the main conservative political opposition in recent polling, levies inflation-indexed tax hikes on alcohol producers twice a year.

“The Albanese Labor Government will freeze the indexation on draught beer excise for two years, in a win for beer drinkers, brewers and hospitality businesses,” Albanese said in a statement.

The measure, to start in August, would take pressure off beer prices at the nation’s pubs and clubs as well as support local businesses and regional tourism, he said.

Speaking to media at a brewery in Sydney, the capital of New South Wales, Australia’s most populous state, Albanese said that attending pubs was “part of who we are as Australians”.

“This is something that has been requested for a long time,” he said, referring to the tax relief, in remarks televised by the Australian Broadcasting Corp.

Alcohol is infused in the social life and identity of many Australians, but researchers expect a trend towards abstinence from alcohol to grow in coming years driven by health concerns and rising prices.