2 August 2025 | The Australian Hotels Association (WA) has welcomed the Federal Labor Government’s decision to freeze the excise on draught beer for the next two years, describing it as “good news for locals who enjoy a beer at the pub, and a wise response to today’s cost of living pressures”.
However, the Association also renewed calls for urgent action on Australia’s spirits tax, which will rise by $1.67 on Monday, reaching a record $105.98 per litre of alcohol.
Bradley Woods, CEO of the AHA(WA), said the beer tax freeze would make a real difference, but warned that the ongoing escalation of the spirits excise threatens the viability of hospitality.
“We commend the Federal Government for freezing the excise on draught beer; it’s a practical, sensible move that will help both venues and everyday Australians who like to enjoy a beer at their local. In the middle of a cost-of-living crisis, every little bit makes a difference for consumers and small businesses alike.
“But while beer drinkers and the venues that serve them get some relief, those who enjoy a gin and tonic, whisky, or cocktail are still being hit with relentless tax increases. It’s simply not fair, and it’s putting enormous pressure on hospitality venues already doing it tough.”
Mr Woods stressed that operators now face a difficult choice: absorb the rising cost of spirits excise or pass it on to customers who are already feeling the pinch.
“Every six months, the excise on spirits goes up, and venues are forced to decide whether to eat the extra cost – often by cutting spending on staff, entertainment, or upgrades – or to pass those costs onto price-conscious customers. It’s a lose-lose situation that risks jobs, investment and the vibrancy of our pubs and bars,” he said.
Mr Woods noted that Western Australia’s hospitality industry cannot continue to shoulder some of the highest spirits taxes in the world.
“Our state’s unique night-time economy with world-class bars, bustling pubs and thriving regional hotels, is under real threat from a tax system that unfairly disadvantages spirits. These small businesses are major employers and cornerstones of their communities, but they can’t keep absorbing spiralling costs,” he said.
The AHA(WA) is urging the Federal Government to extend the same excise relief given to draught beer to spirits and ready-to-drink beverages.
“We’re not asking for special treatment, just a fair go for all venues and customers. Whether you enjoy a pint or a cocktail, you should be treated equally.
“We again call on the Federal Government to match the excise freeze on draught beer with relief for on-premise sales of spirits, so that every part of our hospitality sector can thrive,” said Mr Woods.
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For further information, please contact Kim Forrester, media & communications executive, on 0411 777 593 or email mecom@ahawa.asn.au
The AHA(WA) is the authoritative voice for the hospitality and accommodation industry in Western Australia. Since 1892, we have protected and developed the interests of our members, through strong representation and the pursuit of industry excellence. Our mission is to ensure the hospitality industry remains a vital part of the Australian way of life and to amplify the voices of those we represent.
