Australian PM Pauses Beer Tax Hike in Bid to Boost Popularity Ahead of Election

Australian Government Pauses Beer Tax Hike in Bid to Boost Popularity

In an attempt to improve his low approval ratings ahead of the upcoming general elections, Australian Prime Minister Anthony Albanese has announced a temporary pause on the government's tax hike on draught beer. The move comes as a recent survey suggests a potential hung parliament, with over 50% of respondents believing the Labor government doesn't deserve re-election.

The tax freeze, which will last for two years, is intended to benefit beer drinkers, brewers, and hospitality businesses. Australia 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. This has led to concerns about the affordability of beer, with the cost of a pint expected to rise above AUD 15 due to the tax increases and the cost of living crisis.

The Brewers Association of Australia had previously opposed the tax hike, calling for urgent action to address the high rates of beer tax. Prime Minister Albanese acknowledged the importance of pubs and clubs in Australian culture, stating that the tax freeze is a "common sense measure" that will benefit both brewers and pubs.

However, the move has been met with criticism from the opposition Liberal Party. Shadow Treasurer Angus Taylor argues that the tax freeze is a short-term solution that fails to address the core issue of inflation. He also criticizes the timing of the announcement, suggesting it is a politically motivated attempt to win votes ahead of the election.

Despite the criticism, the government hopes that the tax freeze will be well-received by voters and help to improve their chances of re-election. The upcoming general election is expected to be held by May 2024.