Beer tax backlash grows as 8,000 Australians back petitions to overhaul alcohol excise

A campaign to overhaul Australia’s alcohol tax system is gaining momentum, with more than 8,000 people backing petitions that warn the cost of a pub beer is becoming unaffordable.

Eight separate Change.org petitions are calling for changes ranging from scrapping beer excise altogether to permanently freezing tax increases and easing financial pressure on struggling pubs.

Petitioner and Geelong local Tony Schembri, 60, said he paid more than $30 for three mid-strength schooners at his local pub. The same round would have cost about $5.70 in Melbourne in 1990, a difference of roughly $25.

“I was sick of having to penny pinch every time you want to go to a pub and have a beer,” he told Yahoo News Australia.

“You can’t enjoy going out for a meal and a couple of beers because the food and beer prices are ridiculously high.”

Schembri believes rising costs are driving Australians away from pubs and contributing to the decline of venues that have long been central to local communities and economies.

“Country pubs have pretty much become the thing of the past,” he said.

He believes cutting the tax burden could bring patrons back and lift venue revenue.

“It should be taxed like any other food or drink,” he said.

“We all make our decisions. It’s not up to the government to out-price us.”

Schembri acknowledged the health risks of excessive drinking but said Australians should be trusted to make their own choices.

“I’m not stupid. I know too much alcohol can lead to problems, but financial stress can lead to problems too,” he said.

Tax on value

Beer and spirits in Australia are generally taxed according to alcohol content, while wine is subject to a separate tax of 29 per cent of its wholesale value. 

In August 2025, the federal government introduced a two-year freeze on excise increases for draught beer served from kegs at pubs and other venues. Bottled and canned beer are excluded, so their excise rates have continued to rise with inflation.

“Freezing the excise on draught beer is a common sense measure that is good for beer drinkers, good for brewers and good for pubs,” Prime Minister Anthony Albanese said when announcing the policy.

Beer excise typically rises twice a year in line with inflation.

Jonathan Jackson, 26th October 2026