Excise Tariff Amendment (Draught Beer) Bill 2025, Customs Tariff Amendment (Draught Beer) Bill 2025

Mr FRENCH (Moore) (18:14): I rise to speak in support of the Customs Tariff Amendment (Draught Beer) Bill 2025, which accompanies the Excise Tariff Amendment (Draught Beer) Bill 2025. This is a bill that, if you forgive the pun, goes straight to the taproot of Australia's hospitality culture. This bill does something simple, sensible and overdue.

It pauses the indexation of the customs duty on draught beer for two years, from 1 August 2025 to 1 August 2027. It means that, for the first time in a long while, pubs, clubs and breweries across the country will get a breather from the automatic six-monthly CPI hikes that have been hitting them like clockwork every February and August. I know this might seem like a small change in the grand scheme of tax law, but for venues that are at the heart of our communities, for the small-business owners, for the shift workers, for the kitchen staff and for the locals who rely on them, it matters a lot.

And I can say that with a bit of personal authority, because before I stood in this place I ran a pub myself. I know what it's like to watch your margins shrink every time you get an excise notice in your inbox. I know the pain of seeing the price of a pint edge up, not because of better wages or better hops but because of automatic indexation tied to the CPI.

This bill gives some breathing space to those who've been gasping for it. This is a measured, temporary and responsible pause for an industry that's been doing it tough. In Moore, that means pubs and clubs, from Joondalup to Mullaloo and from Kingsley to Duncraig—family-run venues, where staff know your name, where the kitchen serves a proper parmi and where community sport teams celebrate a win on a Saturday night.

Paddy Malone's in Joondalup, Whitford's Brewing Company and Carine Glades Tavern—they're not just places to have a drink; they're employers, they're training grounds, they sponsor the local footy club, they host charity raffles and they give apprentices a start. When you help a pub stay afloat, you're helping a whole ecosystem of workers and suppliers: farmers, truck drivers, musicians and hospitality staff.

When those venues are stable, the whole economy benefits. This bill doesn't touch packaged beer or retail sales. It's specifically about draught beer—the stuff poured from kegs into a glass.

That's deliberate. The benefit goes to where it's needed, not into supermarket aisles or bottle shop chains. In the 2025-26 budget, this was part of the Supporting the Hospitality and Alcohol Producers Package—a recognition that, while Australia's economy is resilient, the hospitality sector still carries the scars of the pandemic and cost-of-living pressures.

We know that, for many pubs, even a one per cent increase in excise adds thousands of dollars a year to their costs. When those hikes come twice a year, it's hard to plan. This measure says that for the next two years you can plan with certainty.

You can lock in prices, pay your staff and get through the next couple of winters without an unexpected hit. The Treasury has estimated a cost to revenue of around $95 million over five years. That's not loose change, but in budget terms it's a modest and targeted investment, one that supports tens of thousands of small businesses, hundreds of thousands of jobs, and the tourism economy that depends on them.

It's a structural, not temporary, improvement in fairness. When the indexation resumes, it resumes from a frozen rate, so pubs don't face a double whammy down the track. Now there will be those opposite who say they support the bill in principle, but they do wish they thought of it first— Mr Conaghan: We did.

The Nationals did. Mr FRENCH: To that I say, 'That's fine,' because this is exactly the kind of measure that should have bipartisan support. It's practical, it's proportionate and it's temporary.

It helps the people who get up early, work hard and keep our communities humming. This is not about some sweeping deregulation of alcohol taxes. It doesn't undo the public health settings that have kept Australians safer.

In fact, this pause is not anticipated to increase consumption. Prices aren't going down; they're just not going up every six months. We're not talking about cheaper beer.

We're talking about stability for businesses. As a government we believe in responsible enjoyment, fair taxation and vibrant communities. This bill sits squarely in that tradition.

Some have questioned whether pausing beer excise might conflict with health obligations under international law. But this bill clearly meets every test of legitimacy, connection and proportionality. This bill meets all three tests.

It serves a legitimate objective, it is rationally connected to that objective, and it's proportionate. The objective is to support small businesses and regional tourism, not promote consumption. In other words, it's a measure to keep pubs open, not to pour more pints.

In Moore, you can see why this matters. In Joondalup, small bars and local breweries are part of the city's new energy, creating jobs and giving young chefs, baristas and brewers a start. In Mullaloo and Sorrento, the local surf clubs rely on social functions and bar takings to fund lifesaving equipment.

In Duncraig, Padbury and North Beach, community clubs are places where people gather not just to drink but to connect, to celebrate milestones, to mourn losses and to raise money for good causes. When those venues struggle, the ripple effect hits everyone, from the brewer who supplies the kegs to the musician who plays on a Friday night. As someone who once ran a pub, I know how easily margins get eaten up—by electricity, wages, insurance and, yes, excise.

The margin on a pint is thin at the best of times. For many operators it's the difference between keeping on that extra staff member for a Sunday shift and cutting hours. So when the government takes a modest step to hold the excise steady, it's not about handouts; it's about fairness and breathing space.

The Australian brewing industry has evolved dramatically in the past two decades. We've seen an explosion of independent brewers, from small local operations to national names. Many of them operate on tight margins to compete with international giants that can spread costs across multiple markets.

A two-year freeze helps level the playing field just a little. It gives small operators time to invest in quality, in staff training and in sustainability, like switching to renewable energy, local ingredients or recyclable packaging. It also supports regional tourism that flows from our pub and brewing culture.

People don't just visit Margaret River or the Swan Valley for the wine; they go for the whole experience: the food, the music and the community atmosphere. When local hospitality thrives, local tourism does, too. This measure fits within a broader economic story: a government that's managing inflation carefully while supporting small business.

In the same budget that delivered cost-of-living relief for households, energy rebates and tax cuts for workers, we also found room to support the industries that keep our main streets alive, because you can't separate economic policy from community life. You can't claim to be for small business if you ignore the local pub that's been part of your suburb for more than 30 years.

When those doors close, they rarely reopen. So while this bill might sound like a technical tweak to the Customs Tariff Act 1995, its effect is deeply human. It keeps people in work, it keeps venues viable and it keeps communities connected.

For those who enjoy the fine print, yes, this amendment inserts a new section into the Customs Tariff Act. It defines a CPI draught beer rate and sets out that the indexation factor will be treated as one on the four specified dates. In plain terms, it hits 'pause' on the automatic tax rises for draught beer—no hidden fine print, just the two-year freeze.

It aligns with the corresponding section 6L of the Excise Tariff Act 1921, ensuring parity between imported and locally produced draught beer. It applies retrospectively from 1 August 2025, the date on which the Customs Tariff Proposal (No. 1) 2025 took effect in accordance with parliamentary convention. The retrospective application is wholly beneficial.

Nobody is out of pocket and no duty payer is disadvantaged. Let's be honest: this pause won't change the world; it won't double the profit margin of every pub in the country. But it will make a difference at the margins, where most small businesses live and die.

It gives stability for two years, which, in the life of a small business, is a lifetime. And, when indexation resumes, it resumes at the paused rate, not with the accumulated catch-up that wipes out that benefit. That's good design.

It means that, even after the two-year window closes, pubs will still be better off than they otherwise would have been. There's something symbolic about this measure. Australia's pubs are not just commercial enterprises; they're civic spaces.

They host wakes, weddings, trivia nights and community fundraisers. They're where locals gather after a footy match or after a long week at work. In that sense, supporting pubs is supporting social infrastructure.

When I ran my own pub, I saw that firsthand. A pub isn't successful because of its margins; it's successful because the people feel like they belong there. Belonging matters, especially in times like these when too many people feel disconnected.

So, yes, this bill has an economic purpose, but it also has a social one: to keep our communities connected through the places that have always brought us together. Some critics will say: 'Why just draught beer? Why not spirits or wine?' The answer is straightforward.

Draught beer is unique. It's served in licensed venues with responsible service obligations, it's a major employer of hospitality workers, and it's a segment most exposed to the automatic CPI indexation that makes forward planning difficult. Others will say it's tokenistic.

To them I'd say: tell that to the publican who's been trying to make payroll while juggling rising costs on everything from utilities to insurance. For that person, a two-year pause on hikes isn't tokenistic; it's tangible relief. And for the staff who keep those venues running—bar staff, kitchen hands, cleaners and security guards—it's the difference between uncertainty and stability.

To everyone in the industry—the brewers, the bartenders, the chefs, the cleaners and the delivery drivers—this bill is for you. It says your work matters. It says the government sees the pressure you're under, and it says we're willing to act pragmatically, not ideologically, to give you a fair go.

In the end, this bill is about more than beer. It's about backing local businesses, easing pressure on working Australians and keeping doors open on the places that bind our communities together. It's about recognising that when we talk about the economy we're really talking about people—their livelihoods, their relationships and the small joys that make life worth living.

As someone who has pulled a few pints, I can tell you this: there's no better measure of a community's health than the sound of laughter at the local pub on a Friday night. This bill helps keep that sound alive. I say cheers to that.

I commend the bills to the House.