Australian prime minister Anthony Albanese has pledged to temporarily pause the government’s tax hike on draught beer in a bid to turn round his low approval ratings ahead of the country’s general elections due by May.
“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,” the prime minister said in a statement on Saturday.
The country is one of the highest spenders on alcohol, and the amount of alcohol excise charged for beer increases twice a year in line with inflation.
Tax from alcohol manufacture and sales are a large revenue stream that brings in millions of dollars for the Australian government.
Australia’s Brewers Association had opposed the last tax hike in February asking for “urgent action” to address the high rates of beer tax.
Amid the tax increases and the cost of living crisis, the cost of a pint of beer was expected to rise to over AUD 15 (£7.40).
“It is increasingly unaffordable for many people to visit their local to catch up with friends or have dinner with their family,” the association said.
Mr Albanese told reporters in Sydney on Saturday that attending pubs and clubs was “part of who we are as Australians” and that the latest move was a “common sense measure” good for brewers and pubs.
“This is something that has been requested for a long time,” he said.
The move also comes as a recent survey conducted by The Australian newspaper suggested there could be a hung parliament if its poll numbers were to be replicated at the country’s looming general election.
Of the 1,244 voters who were surveyed, more than 50 per cent said they did not believe the Labor government deserved to be re-elected.
Mr Albanese’s approval rating in particular hit a record low of minus 21 – with 56 per cent giving him a poor rating and only a third giving him a good one.
Angus Taylor, the shadow treasurer of the Liberal Party, supported the decision, stating that thousands of pubs went under in the last three years.
However, he criticised the Albanese government for choosing the “eve of an election” to promise a tax freeze and for failing to address “inflation at its core”.
“While a few cents off beer will be welcome, it will not fix all the damage that has been caused by Labor’s failed economic management,” Mr Taylor told News.com.au.
