Pat Conaghan (Cowper, National Party, Shadow Assistant Minister for Social Services) Share this | Link to 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.

Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

Is the motion seconded?

Kevin Hogan (Page, National Party, Shadow Minister for Trade and Tourism) Share this | Link to this | Hansard source

I second the motion and reserve the right to speak.

Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

I need to begin by declaring that I have a conflict of interest in this field of policy. I am a founding shareholder and was until recently a director of Beelu Forest Distilling Company. My husband is now a director of that establishment. I thank the member for Cowper. This is an issue close to the heart of my own electorate of Hasluck, which features the Swan Valley and Perth Hills tourism regions and has the largest concentration of breweries, distilleries and vineyards in the Perth greater metropolitan region.

This is not, however, just an issue of great importance to Hasluck. We have world-class wine, brewery and distilling sector that adds over $11 billion in total value to the Australian economy. While much of this is in wine, there has also been great growth and recovery across all the other products since the pandemic. According to DFAT, in 2022, we exported $41 million of whiskey, $31 million of liqueurs and cordials, $24 million of beer, $19 million of gin and $15 million of vodka. It means wealth and jobs at the farms that grow the grains, grapes and sugars, and it means jobs in transport, infrastructure, construction, retail, hotels, pubs, cellar doors and tourism precincts. Of course, on the home front is an abundance of high-quality beverages made by businesses that come from and add to our neighbourhoods. It is important to acknowledge that, in many respects, industry is thriving, with over 800 small distilleries and over 600 independent breweries as testimony to that. I'm sure we can all agree that we want them to grow into sustainable, medium and large exporting businesses.

Clearly, however, there have been mixed consequences of the excise regime and also of the $350,000 refund remission scheme introduced by the coalition under Scott Morrison, who on the election trail in 2022 made policy on the fly with little consideration to the consequences. Fast forward to today, and there are claims of excise avoidance, 'craftwashing' and shadow factories. Worse than that is the disincentivising of growth, particularly for the mid-tiers. The Labor government is working to understand these issues across the sector, hence the present inquiry into food and beverage manufacturing by the House Standing Committee on Industry, Science and Resources. The challenge before us is to chart a course that encourages healthy growth and competition.

I'd like to briefly share some illustrative examples and perspectives from the mid-tier manufacturers in my own electorate. Tony Williamson is the CEO of Bailey Brewery Co., a medium producer based in the Swan Valley tourist region. He points out:

… the current excise tax structure is complex and assists small breweries in the short term. The $350,000 excise rebate is a great help; however, it hinders growth. Raising it to $1 million would very much assist growth and employment.

He also suggests:

… the increase twice a year of the excise is counterproductive, as consumers don't understand the tax system. When beer prices go up every six months, they tend to think that we are gouging. It is the complete opposite. They pay more while it eats into our small margins.

Another successful medium-sized distiller, James Young from Old Young's, points out of the excise remission scheme:

… the intention was to create conditions that would allow small distilleries to grow and create more jobs and investment. Unfortunately, it is having precisely the opposite effect. A producer can sell 11,666 bottles per year excise free. The result is that our cohort of medium-sized manufacturers is now competing with hundreds of small distillers that can undercut our pricing by up to $30 a bottle.

Paul White is the managing director of the medium-sized West Winds Distillers. Paul describes the steady growth of excise pressures over their 12-year journey and says:

… the current excise rate of $101.85, up from $71.67 in 2010, combined with the rebate system, is killing our ability to grow and compete profitably.

He also points out that in a new trend, at least in WA, any company with a tavern licence can produce their own spirits or beer. Some of these tavern distilleries don't even produce onsite but, instead, purchase from local producers and avoid paying the excise. Paul notes:

We cannot compete against distilleries that are now charging as little as $17 per bottle …

He says:

… the Liberal (coalition) government and the ATO created this mess, it would be great if the current government and the ATO at least tried to help us find a way out of it.

Fortunately, the review that is underway will provide an evidence based approach. Of the 121 submissions received to date, the majority, 68, are from wine, beer and spirits producers and businesses impacted by the excise. I'm confident the review will frame their recommendations—and get them right—to lead to strong and sustainable growth and to add value to the economy for Australian consumers and businesses of all sizes.

Kevin Hogan (Page, National Party, Shadow Minister for Trade and Tourism) Share this | Link to this | Hansard source

I thank my friend and colleague the member for Cowper for moving this motion. I think it's a really important motion. It's important for our communities and for our small businesses that operate this trade.

I think most people would understand that the excise that we put on alcohol goes up twice every year and that it has been doing that for 30 years, so the compounding effect of these price increases is obviously making many things unaffordable. I know the member for Cowper did this when he spoke earlier, but I just want to remind the chamber of two stats, and they are these: 60 per cent of the cost of packaged full-strength beers and 47 per cent of the cost of mid-strength beers is now tax. So, basically, just under half of what a mid-strength beer costs you is a tax and 60 per cent of a full-strength beer is a tax. That's obviously a lot of the cost of the product. The other stat that I want to remind the chamber of is that 63 per cent of the cost of an average bottle of spirit comprises a tax.

Now, Madam Deputy Speaker Sharkie, you would know, as I know—we all know—that the intention of this, when it was brought in, was good. The intention was to discourage antisocial behaviour or to discourage behaviour that would not be good for your health, but I think we have gone beyond that now. We've gone way beyond that. Dare I say it, governments are now a little bit addicted to the revenue that they get from this and the compounding effect of that revenue.

We have 600 distilleries operating across Australia. The majority are actually in regional areas, and they contribute over 5,000 jobs. So, besides the product, this is a serious business, a serious employer, in our communities. I know the member for Cowper did something that I won't do. He started naming the names of some of the great businesses in his electorate. I won't do that. I have some great pubs, clubs, distilleries and breweries, but there are stats that I think are important to remind people of. There are over 6,000 pubs and taverns and over 6,000 clubs across Australia. The important stat here is that 90 per cent of them employ 20 persons or fewer. I know that in my case the majority of the distilleries, breweries, pubs, clubs et cetera are small businesses, and they're really important gathering places. They're important for people socially. I think they're important for community harmony. People get together and have fun, socialise and do what they do.

This increase in excise may have a perverse health outcome as well. Every person knows that if you sell alcohol on your premises you're governed by a lot of regulation. I'm actually old enough to remember when there wasn't a lot of regulation about how you sold alcohol and who you sold it to. I probably shouldn't say this, but I think I had my first drink at a pub when I was about 16, and my local priest bought it for me. But, anyway, we won't go into that; he was a good guy. The industry now is educational. Pubs, clubs and distilleries take what they sell very seriously. They sell a good product, but they don't want people to use and abuse it. So the educational things that they do and the way in which they regulate people's behaviour is, I think, important, especially for younger people when they start going out and socialising at these places.

The accommodation and food services sector employs 900,000 full-time, part-time and casual positions across Australia. This excise is also affecting the night-time economy, which is a significant contributor to live performances. Arts and cultural events generate $146 billion in sales turnover, and 131,000 venues employ more than a million people. The member for Cowper has mentioned this because most people in my community who are involved in this industry are basically telling us that this is now getting to a tipping point. We're not alone across the globe in this. The UK have had an interesting experience. A year or so ago they increased the price of spirits by 10 per cent, and they immediately had a 20 per cent fall in sales. The tax increase contributed to the largest rise in inflation ever recorded in the UK and to lower tax revenue. This has obviously played a role—it's played a good role—but we're getting to the point now where we need to stop this and come up with a more comprehensive policy.

I mentioned before that why this would ever have a perverse health outcome is because more people are making illicit products, which is bad for people's health. I didn't realise my time was about to run out.

Gordon Reid (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

The alcohol excise indexation is a longstanding feature of the tax system and has been under governments of both persuasions—under Labor and under the Liberals and Nationals. The alcohol excise rate is indexed to the consumer price index to ensure that alcohol excise receipts keep pace with inflation and that the tax component of alcoholic beverage prices remains broadly stable as a proportion of their total price.

As we know in this chamber, this indexation for alcohol occurs twice a year—it occurs once in February and then again in August—and then revenue from that excise goes into funding essential services for the benefit of the whole community, such as health, defence, education, infrastructure—I could go on. The government listens respectfully to the ideas put to it. We have weighed it up against other priorities and, essentially, within the budgetary constraints that we inherited from the coalition, including a trillion dollars of Liberal Party debt—all of this was taken into consideration.

Inflation is still higher than we would like, but it's less than half its peak and much lower than what we inherited from the coalition. At the election, as we know, inflation had a six in front of it, and now it's got a three in front of it. It's still too high—it is sticky—but it does now have a three in front of it. Underlying inflation has moderated, and the momentum of inflationary pressures is going downwards.

Our budgetary strategy, the last budget that was handed down by the Treasurer, is helping to fight against inflation in this country, not hamper it. Fiscal policy isn't the primary determinant of prices in our economy, but our decisions, the federal Labor government's decisions, in the budget can help, and they are helping. Our budget is helping to take some of the edge off inflation. We have delivered the first back-to-back surpluses in almost two decades, which the RBA governor has said are helping to fight against inflation. We're also on track for larger-than-forecast surpluses, which could be the largest back-to-back surpluses on record.

Demand in our economy is weak because people are under pressure, which is why our economic plan is all about fighting inflation without crunching the economy. Our cost-of-living relief is easing pressure on Australians, and ABS data shows it took half a percentage point off inflation. In the year to the June quarter of 2024, electricity prices rose by six per cent and would have risen by 14.6 per cent without our energy rebates. In the year to the June quarter of 2024, rents rose 7.3 per cent. Without the largest increase to rent assistance in 30 years, they would have risen to 9.1 per cent. In the year to the June quarter of 2024, childcare prices fell by 5.7 per cent but would have risen 14.9 per cent without our policies.

If the coalition truly cared about fighting inflation, if they truly cared about budget repair and about proper and true economic management in this country, they would be voting for our cost-of-living relief. Their track record on this is absolutely shameful. They won't back in the policies that will help everyday Australians not just in my electorate of Robertson and not just in the city centres but right across the country, from the coast to the bush, from the north to the south. An example of this betrayal of the Australian people was when they voted against our energy bill relief. They voted for higher prices. They voted for higher inflation. What the Albanese Labor government is focused on is tackling inflation through responsible and targeted cost-of-living relief, and the Labor surpluses are absolutely assisting with that.

Warren Entsch (Leichhardt, Liberal Party) Share this | Link to this | Hansard source

I'm here to speak in strong support of the motion moved by the member for Cowper, which highlights the critical issue of alcohol excise in our country. This is not just about beer and spirits; it's about the survival of small businesses, the livelihood of thousands of Australians and the future of an industry that is prevalent in all of our communities.

We are all aware that the cost of living in Australia has been rising at an alarming rate. Electricity bills, raw material costs, transportation expenses, the list goes on—everything has been going through the roof. But what makes the situation even more untenable for our local brewers and distillers is the relentless biannual increase in alcohol excise. As it stands, Australia is ranked among the highest in the world when it comes to alcohol excise, and this is crippling our domestic industries.

I recently received a letter from Rob Callin, the owner of Macalister Brewing Company, a proud and hardworking small business in my electorate of Leichhardt. Rob's story, unfortunately, is not unique. Like many other small independent brewers, Rob has faced a staggering 40 per cent increase in production costs over the past two years. I think this is the difference we are talking about now: the significant increase that we're seeing in cost of living. It's unprecedented, and it's certainly having a significant impact in this industry. The increase in production costs, coupled with automatic six-monthly increases in excise tax, is pushing these businesses to the brink. Rob tells me that, in the past 12 months, over 20 independent brewers across the country have either gone into voluntary administration or closed their doors for good. The majority of the more than 600 small brewers that are still operating in Australia have been forced to reduce staff just to keep the lights on.

Small breweries like Macalister Brewing Company, Copperlode Brewing Co. and Hemingway's Brewery are an integral part of our local communities. They employ local people, support regional tourism and contribute to the vibrant culture of Far North Queensland. These businesses are also essential to our regional and rural economies. The craft beer industry in Australia provides approximately 35,000 jobs, two-thirds of which are located in regional and rural areas. It's important to remember that these small businesses are not just competing against each other; they're competing against the giant multinational corporations with far more resources available to them. While the excise remission scheme for small businesses is indeed a lifeline, the problem is that the remission is capped at $350,000, and it's not indexed to inflation. This means that, as the excise goes up every year, the value of this remission effectively erodes, putting even more pressure on small businesses.

It's clear that the current excise regime is unsustainable, out of date and no longer fit for purpose. The government needs to take immediate action to provide relief to our domestic beer and spirits industry. The industry is desperate for a sensible package of tax reform and policy settings that balance the responsible consumption of alcohol with the need to support industry sustainability and growth. It's no secret that Australians like a drink, but the ever-increasing cost of shouting a round for your mates at the pub is becoming prohibitive. The government is going to send punters, publicans and brewers all bankrupt. It's unsustainable and, quite frankly, it's un-Australian.

Our trading partners, including Japan, the United Kingdom and Canada, have already moved to freeze alcohol excise duties to relieve pressure on their domestic industries. I believe that Australia must follow suit. The fact that we might have done it in the past doesn't mean that, with the changing circumstances, we should continue to do it to the point where we wipe out an industry in total. We can't afford to wait any longer. The government must now act to freeze and reduce the alcohol excise, provide targeted relief for small brewers and distillers and ensure the long-term viability of this important industry.

Lastly, I commend the member for Cowper for bringing this motion forward and I hope that the parliament will listen to these concerns of industry and decisively address what is a very critical issue.

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak on the motion moved by the member for Cowper and I thank the member for bringing this matter forward. Alcohol excise indexation is a longstanding feature of the tax system under governments of all persuasions over many, many years. As has been commented upon, it's indexed twice a year to the consumer price index. This is not a new phenomenon, and the relative proportion of tax compared to the cost of these beverages has remained pretty stable over the decades. Price signals are actually very important in reducing the consumption of alcohol. Whilst there are concerns about some of these small businesses, I would be very concerned about reducing the price signals for the consumption of alcohol. There have been a number of reports published over many years by a number of different research organisations that have shown the importance of price signals in reducing alcohol consumption.

This government is committed to easing cost-of-living pressures. Underlying inflation has moderated under our government compared to the previous Liberal-National government, but the momentum of inflationary pressures is downwards, rather than upwards. Inflation is, of course, higher than we'd like, and I've heard from many constituents in my electorate of Macarthur who own small businesses about how difficult it is at the present time. They've expressed to me their struggles and concerns due to the cost-of-living pressures and expenses. But for the coalition to argue that our government is ignoring the cost-of-living pressures is simply untrue.

We know that people are finding it difficult, and that's why we designed a budget to help take some of the pressures off people, with power bill relief and tax cuts across all taxpayers, rather than just the wealthy few. We've included meaningful cost-of-living relief measures that won't add to inflationary pressures, such as increasing the Medicare levy low-income threshold, as well as the cost-of-living tax cuts, as I've mentioned, and energy bill relief. In health care, we've increased the incentives for bulk billing by doctors. We've introduced cheaper medicines—in particular, the 60-day prescribing, as well as the reduction and freezing of many of the costs associated with purchasing medications. This is just to name a few, and there will be more to come.

The advice is clear that our tax cuts will not add to inflationary pressures, they're broadly revenue neutral and they're for everyone who pays tax. Inflation is less than half of its peak and much lower than what we inherited from the coalition, who have continually voted against cost-of-living relief.

As a paediatrician I'm also very concerned about the burden of alcohol on our health system and the health of Australians due to the consumption of alcohol, particularly that of children and families. The Australian Bureau of Statistics causes-of-death report shows that, in 2022, almost 2,000 people in Australia died of alcohol induced causes directly, such as liver cirrhosis or acute alcohol poisoning. Alcohol induced deaths as part of a cause of death are much higher than this and are recorded as a rate of six deaths for every 100,000 people living in Australia, the highest rate reported in a decade. That is very concerning, and that's why we must not reduce the cost incentives for reducing alcohol consumption.

I've treated children affected by fetal alcohol syndrome and, on a recent trip to Western Australia and the Northern Territory, I saw many people that had been affected by fetal alcohol syndrome. I've seen the burden this puts on our health system and on our criminal justice system. This condition is lifelong and causes a range of physical and mental disabilities.

Alcohol excises are used to reduce the alcohol intake and improve the health of Australians. They remove some of the burden of alcohol related illness on our health system. The revenue from excises, including alcohol excises, goes into funding essential services, not just our health system, and contributes to the costs associated with treating disorders due to alcohol consumption and related things such as involvement with the criminal justice system. We must not reduce this alcohol excise or reduce the trigger for reducing alcohol consumption. We are continually ridiculed by those opposing us, who appear not to put the health and livelihoods of Australians first. We must do what we can to reduce the harm caused by alcohol in our society.

Colin Boyce (Flynn, Liberal National Party) Share this | Link to this | Hansard source

From 5 August prices rose two per cent on spirits and beer products. As the industry pointed out, this tax is 'a pain in the glass'. The expectation is that the tax will jack up the price of a schooner of beer at your local pub or club by about a dollar to more than $10.

I rise to support the member for Cowper's motion today, as I too acknowledge that the beer and spirits excise is unsustainable for our pubs and clubs and our hospitality industry in general. The motion notes that successive biannual increases in beer and spirits excise on alcohol now see Australia having amongst the highest excises in the world. 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. The excise regime is now putting at risk the viability of Australian distillers, brewers, distributors, pubs, clubs and related industries. The excise regime is untenable against the current global backdrop, with crucial trading partners, including Japan, the United Kingdom and Canada, already moving to freeze alcohol excise duties to relieve the pressure on their domestic industries.

This is what the industry has said about the tax increase. The Australian Distillers Association's chief executive, Paul McLeay, said:

The continued Government inaction on this issue is incredibly frustrating for our industry, which already contributes $15.5bn in added value to the Australian economy and supports more than 100,000 jobs …

He stressed that a freeze on spirits tax was urgently needed, along with a partnering of the federal government with industry to create an export body for spirits, as has been successfully done with the wine industry in Australia over recent decades. Craig Michael, the director of Bellarine gin distillery in Victoria, added that his business now faces taxes that are $25 a litre greater than when the company began in 2015. Mr Michael said:

These six-monthly increases are becoming increasingly difficult for our business to sustain, and they are impossible to plan for …

How can we accurately undertake financial modelling and make business decisions if we don't know what tax rate we will be paying in six months' time?

The Australian beer sector representatives are also worried about how continuously increasing duties will affect smaller businesses specifically. According to the Independent Brewers Association, while the excise increase will not be pose problems for the 'foreign-owned duopoly that controls the Australian beer market', smaller brewers 'cannot keep absorbing the ballooning costs of making beer without increasing the price of their beer', and this means that 'being able to support your local will be soon out of reach for many, and job losses will continue'. He added that:

Every cent that independent brewers spend on excise is money they cannot invest back into their staff, innovation, sustainability or supporting their communities.

And that:

They also do not want to pass these costs on to consumers, but they may be forced to as the cost of materials, energy and freight are still making it almost impossible to keep these Australian owned small businesses alive.

The IBA also pointed to the excise relief measures for craft brewers in place in the UK and Canada as examples of local governments that understand the value of the industries that they bring to their communities. The excise increase marks hikes of more than 10 per cent since the last federal election, according to the Brewers Association of Australia, which its CEO, John Preston, said 'shows that these tax hikes are becoming out of control'.

The only thing more Australian than a fair go is Bundaberg Rum. The Bundaberg Rum distillery in Bundaberg East is a stone's throw away from my electorate of Flynn. So when 63 per cent of the cost of a bottle of Bundaberg Rum is taxed I reckon that's 100 per cent un-Australian. The Australian spirits tax is currently the third-highest in the world. The spirits industry alone will pay $5 billion in excise this year in Australia, and this tax continues to grow twice a year every year.

Don't grin and bear the tax on Bundy. I'm calling on the Labor government to give a fair go to Bundaberg Rum lovers and beer and spirit drinkers across Central Queensland and put a stop to these unnecessary price increases. I call on the Labor government to provide an immediate cost-of-living measure for the domestic beer and spirits industry.

Michelle Ananda-Rajah (Higgins, Australian Labor Party) Share this | Link to this | Hansard source

Australians have embraced the craft beer experience, and it is an elevated experience characterised by an upmarket ambience—not the beer-soaked carpets and sticky tables of street-corner pubs—restaurant standard food and a wide range of brews. And these businesses are local, with venues in our suburbs or regional areas associated with strong connections to the community. These small businesses have surged, accounting for eight per cent of the beer sector, with businesses going from a couple of dozen in 2003 to almost 700 in 2023.

The period post lockdown was lucrative as people splurged on craft beers, but those good times did not last. For many reasons the cycle of boom has been followed by bust. A perfect storm of factors has contributed to this outcome. The routine indexation of the alcohol excise is one factor, but there are many others: changing consumer behaviour—Australians are simply drinking less beer than they used to; worker shortages driving up wages—a real competition for talent; rent increases; energy shock from the war in Ukraine badly exposing our ageing energy grid that is over-dependent on fossil fuels; and supply chain shortages increasing the costs of ingredients. In short, it is an inflationary storm fuelling a cost-of-living crunch leading to higher interest rates, which has had the effect of snapping wallets shut. It's been a vicious cycle.

It is predicted up to two-thirds of these businesses will go under in an industry dominated by a Japanese duopoly, emphasising the importance of our competition and merger reforms that this government is promoting. Some describe this as market rationalisation. Businesses vulnerable to downturns without big enough moats have been picked off by the so-called free market. What's missing is the hard work of the founders—the people driving these businesses, putting their heart and soul into them, supporting locals and local communities and gentrifying neighbourhoods by attracting other businesses when they arrive.

Also missing are the social, economic and health harms associated with alcohol; that's a narrative I am more than familiar with. Patients with alcohol associated health problems were the norm when I practised, but I saw a change from the usually older male or female with alcohol abuse and its advanced manifestations, whether they be cognitive impairment, dementia, memory failure, alcohol withdrawal seizures, cirrhosis, peripheral neuropathy or cardiomyopathy. 'Every major organ affected' was usually the diagnosis made from the end of the bed. The change I saw was in more younger men presenting to the emergency department after the lockdowns finished. One was a man, a young professional and IT worker, who presented with yellow eyes; he was so jaundiced from alcohol hepatitis. Another I treated was a young father in his mid- to late 40s who, in an alcohol fuelled episode, had destroyed his kitchen and punched a hole in the wall, scaring away his kids and wife. In that bed he wept, as he had been estranged from his family.

The social harms of alcohol misuse or abuse are rarely seen by most Australians because of the stigma associated with them. But they are evident to any healthcare professional. Our hospital wards are full of these patients day in and day out. Hospitals, GPs, community care, social workers, community and children's services, housing services, legal services, the justice system and police—all are the services needed to deal with one family affected by the harms of alcohol. Multiply that up by the over one in four Australians who are adults who drink too much. In 2022 the ABS reported over 1,700 alcohol related deaths; it's likely an underestimate because most of this is hidden. The social harms, like domestic violence, are even greater, and someone has to foot the bill.

The Liberals are now singling out the excise, when they did nothing about this reform when they were in power for over a decade. We have listened respectfully to the industry, but we will not be adjusting the excise at this stage. Instead, our focus is to support individuals, families and businesses during this inflationary phase, and we're doing that with a range of measures: tax cuts, energy rebates, grants for small businesses and so on. Had we inherited a more resilient balance sheet, we could have looked at short-term relief.

Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next setting.