Indexation levels on draught beer will be frozen for two years from August under a proposal put forward by Prime Minister Anthony Albanese
Beer excises increase twice a year in line with inflation and currently range in price from $10 to $43 per litre, depending on the amount per container and its alcohol content.
Mr Albanese said the freeze on taxes for beers on tap would bring about cost-of-living relief.
"My government is building Australia's future and to do that, we need to support our small and medium local businesses to thrive," Mr Albanese said.
"Freezing the excise on draught beer is a common sense measure that is good for beer drinkers, good for brewers and good for pubs."
Talks are set to take place with the brewery and hospitality sectors ahead of the freeze on excise coming into effect.
The measures come off the back of brewers, distillers and wine producers getting tax relief measures.
The government recently announced it would increase the amount refunded to the alcohol producers from $350,000 to $400,000.
Treasurer Jim Chalmers said changes to beer taxes would ease production costs across multiple sectors.
"This is a modest change, but will help take a little bit of the pressure off beer drinkers, brewers and bars," Dr Chalmers said.
The announcement comes ahead of a looming federal election, with speculation the prime minister will call the poll in a matter of days.
While an election must be held by May 17 at the latest, it's widely tipped voters will head to the ballot box some time in April.
The latest YouGov poll showed the coalition ahead of Labor on a two-party preferred basis, leading 51 per cent to 49.
19°C