Pat Conaghan (Cowper, National Party, Shadow Assistant Minister for Social Services) Share this | Hansard source

I move:

That this House:

(1) notes that:

(a) successive, biannual increases in beer and spirits excise on alcohol now sees Australia having amongst the highest excises in the world;

(b) combined with the cost of living pressures, increased costs in energy, refrigeration, wages, raw materials and transport, the cost of alcohol products has risen substantially;

(c) the excise regime is now putting at risk the viability of Australian distillers, brewers, distributors, pubs, clubs and related industries; and

(d) this excise regime is untenable against the current global backdrop, with crucial trading partners including Japan, United Kingdom, and Canada having already moved to freeze alcohol excise duties to relieve pressure on their domestic industries; and

(2) calls on the Government to:

(a) provide immediate cost of living measures for the domestic beer and spirits industry; and

(b) develop a sensible package of tax reform and policy settings that:

(i) balances the responsible consumption of alcohol by the majority of Australians;

(ii) supports industry sustainability and growth; and

(iii) addresses the social and health impacts of risky and excessive drinking behaviours.

I rise today to speak about the ever increasing government burden being placed on family owned and run businesses in my community—in all our communities—those businesses that help to keep our local economies ticking along and add to the fabric of our uniquely regional experience. That burden is the excise on beer and spirit producers across the country.

Many people would be surprised to know that in 2023 alone the excise increase on beer was up 11 per cent, which means that 60 per cent of the cost of packaged, full-strength beer and 47 per cent of mid-strength beer is now comprised of tax. That's almost two-thirds of a beer that you drink or buy from a shop. The excise on spirits has risen 17 per cent since 2020, with up to 63 per cent of the cost of an average bottle of spirits comprised of tax, and since 2014 the increase in excise has been above the CPI. So business is going backwards. We don't do that to any other business. There'd be outrage.

On the Mid North Coast of New South Wales—and, of course, in all our electorates—we're lucky to have some amazing award-winning brewers and distillers, many of whom source their ingredients locally or from their own properties. There are businesses like King Tide Brewing in Coffs Harbour, Bucket Brewery in Kempsey, Moorebeer Brewing and Black Duck Brewery in Port Macquarie, as well as Maria River Distillery and Bellingen Brewery & Co, just to name a few. We're also very lucky to have a healthy variety of pubs and hotels that have served our communities for generations in more ways than one, and if you're from a regional community you'll understand what I mean. For example, the Willawarrin Hotel doesn't just act as the local pub; it's also the go-to place, the hub during the fires and the floods that we have seen not just over the past five years since I've been in this role but for generations. The Flower hotel group sponsors more kids and sporting teams than I can count, and pubs like the West Kempsey Hotel and the Hoey Moey support live bands and live acts and play a significant role in our entertainment industry. But, due to the cost-of-living crisis and significant increases in operating and supply costs over the past three years, these very businesses are balancing on a very narrow tightrope. They're being forced to absorb more and more costs, such as increasing freight charges, electricity and insurance premiums, and they can't pass them onto the consumers. They can't continue to do that. Consumers are becoming increasingly more price-sensitive. They're deciding not to go out because of the cost-of-living pressures.

As I said, this isn't unique to my electorate. We've seen the dire predictions from the industry watchdogs that one in 11 Australian hospitality businesses are set to close over the next 12 months—one in 11. The last thing we want to see is another blow to the cost-to-consumer balance, and that's exactly what these continued excise increases will do. But I will acknowledge those who don't agree with my position on this in relation to alcohol consumption and causal effects. Does alcohol contribute to domestic violence? Absolutely, yes. It's documented and irrefutable. Does alcohol contribute to and lead to significant health difficulties? Absolutely. It's well documented and irrefutable. But the question that needs to be asked when it comes to this specific issue is this: has increasing the excise year on year twice a year reduced problematic behaviours associated with alcohol? The evidence is there. The answer is, 'No.' The price sledgehammer is not effective in improving our health or social outcomes. I call on the government to provide immediate cost-of-living measures for the domestic beer and spirits industry and to work to develop a sensible package of tax reform policy and policy settings that balance the responsible consumption of alcohol by the majority of Australians.

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