Independent Brewers Association Calls for Australian Alcohol Tax Reform

The Independent Brewers Association has called on the Australian government to review the national alcohol tax system, warning that tax disparities between beer and wine undermine public health goals.

Draught and packaged beer face tax indexation twice a year under the current framework, while bulk wine retains preferential treatment under the Wine Equalisation Tax.

Led by CEO Sabrina Kunz, the association responded in October 2026 to recommendations from the House of Representatives Standing Committee on Health, Aged Care and Disability, which urged Treasury to assess whether structural tax reform is needed.

Disparity between beer and wine duties

Small commercial brewers face higher tax obligations per standard drink than producers of bulk cask wine. The Wine Equalisation Tax applies to wholesale value rather than alcohol content by volume. This creates a persistent price gap on retail shelves.

Parliamentary committee findings acknowledged that non-uniform taxation keeps cheap high-strength products widely available. Craft operators argue this structure penalises local brewers facing high domestic manufacturing costs. At the same time, it subsidises industrial wine output.

Sabrina Kunz, chief executive of the Independent Brewers Association, said current policy fails to support health objectives: “If Government were serious about using taxation as a tool for harm minimisation, they would incentivise consumers to choose ‘low’ and ‘no’ alcohol products.”

Shifting consumption patterns

Official data shows per capita alcohol intake and risky drinking have fallen steadily across Australia over the past two decades. Underage drinking rates fell by half across the same period. Younger consumers have shifted away from volume consumption.

Independent economist Professor Kym Anderson documented that moderation in beer was the primary driver of Australia’s declining alcohol intake over the past half-century. Small producers developed artisanal products alongside mid-strength and non-alcoholic alternatives. These offerings directly reshaped drinking habits.

Excise policy has failed to keep pace with these shifts, industry advocates argue. Tax rates on packaged beer rise automatically every six months in line with the consumer price index. This drives retail prices higher even as overall consumption volumes shrink.

Community venues under cost pressure

Rising excise liabilities hit independent taprooms alongside escalating commercial rents, utility bills, and packaging costs. Independent operators lack the scale to absorb persistent excise hikes across high-volume networks.

Taprooms operate as community hubs without gaming machines, generating regional employment and local supply chain demand. British Beer and Pub Association research showed that neighbourhood venues generate measurable community wellbeing benefits. Heavy taxation erodes those gains.

Hospitality margins have contracted sharply across regional and suburban venues. The pressure forced several craft breweries into voluntary administration or consolidation over the past two years. Industry leaders argue that excessive duty on draught beer damages viable hospitality businesses without curbing heavy consumption of cheap alternative alcohol.

Next steps for Treasury review

The campaign follows a formal submission by the brewers association to the parliamentary committee in November 2024. The final committee report in May confirmed that the existing tax mix does not provide adequate economic or health safeguards.

Treasury faces pressure from craft beverage manufacturers, public health advocates, and regional venue operators to deliver clear volumetric modelling. The brewing sector wants excise rates linked directly to alcohol volume across all beverage types. Brewers also seek duty exemptions or lower bands for mid-strength and zero-alcohol options.

Federal ministers have not yet set a formal timetable for Treasury to publish its excise modelling or table legislative reforms ahead of the upcoming budget.