Labor has secured victory in the general election, sparking optimism across the craft beer sector. Having pledged a range of reforms aimed at supporting independent brewers in the lead up to the election, the win has raised hopes for welcome relief across the industry.
The Independent Brewers Association (IBA) congratulates the Labor Government on their empathetic win, and Evin Craney, Chair of the IBA, is optimistic that reforms are on the horizon.
“Prime Minister Albanese has long positioned himself a champion and advocate for independent brewers in Australia. Let’s not forget he himself is the member for Grayndler which contains one of Australia’s most important and prolific independent beer scenes with the Inner West Ale Trail,” he told Beer & Brewer.
“With this and some historic evidence of his love for our space in the world, there is some real optimism that, with such a clear path to strong government for the Labor party, we can finally see the much needed review and reform that several members of Labor party were spruiking pre-election as a guarantee if re-elected.”
Kylie Lethbridge, CEO of the IBA, says she looks forward to working with the returned Albanese Government and ensuring action is taken to finish the work started in the previous term.
“There was a lot of work undertaken over the last three years which set the foundation for real reform we have been advocating for, for nearly a decade – structural changes to the taxation regime for alcohol and dealing with the market dominant duopoly in the beer sector.
“The Australian consumer knows that the current situation is untenable, our independent brewing members know it, and the Prime Minister knows it. So, there is no reason that the Labor Government can’t hit the ground running and take action on their commitments, promises and recommendations from their own inquiries.
“Given they don’t have to waste time bedding down a new government, we look forward to working with the Prime Minister and his team as quickly as possible,” she explained.
Advocating for a complete excise freeze
As part of its 2025-2026 Budget, the Labor Government showed its support for the brewing industry by committing to a bi-annual draught beer excise freeze for two years from July 2025.
Breweries with their own taprooms are set to benefit from the draught excise relief, and while it marks a step in the right direction, Craney says the IBA will continue to push for a complete freeze in excise.
“Independent beer by virtue of the heavily restricted draught market in Australia sees its greatest access opportunity in retail sales, the fact that [packaged beer] hasn’t been included is a major misstep by the federal government and something we will continue pressuring on until it is resolved,” Craney stated.
“The draught pause shows that the direct work of the IBA team along with punters and members of their communities had an impact and was heard in Canberra.
“If our CEO Kylie Lethbridge has shown anything to members during her tenure it’s that she won’t ever stop fighting and advocating. The Federal Government, given their newly increased position of power, have a real capacity to make meaningful and beneficial change for both small business and consumers alike. The IBA isn’t going to rest, the next chapter is just beginning,” he continued.
The Government also promised to permanently increase the excise remission cap to $400,000 for all eligible alcohol manufacturers from July 2026.
“This will be a direct saving for breweries that have passed the cap as well as allowing for some slight growth space for those on the cusp,” says Craney.
“Unfortunately, though the current Prime Minister was indeed responsible for championing the initial excise cap increase that the IBA fought so hard for only a few short years ago, it was not indexed to CPI like excise is. So whilst, yes, this is a benefit for members over the cap, it doesn’t actually make up for the shortfall due to the lack of indexation in the first place.”
Labor made several other commitments that are likely to benefit independent breweries, such as extending Unfair Trading Practices protections to small businesses and investing $20 million in a Buy Australia campaign. The Labor party also promised to allocate $38.8 million to the Australian Competition and Consumer Commission (ACCC) to crack down on misleading and deceptive pricing practices and unconscionable conduct in retail.