Independent MP Zali Steggall calls for urgent action to support Warringah’s craft brewers and distillers: excise Tariff Amendment Bill Falls short
Independent Warringah MP Zali Steggall has called for stronger support for independent alcohol producers, warning that excise tax pressures and rising costs threaten the future of small brewers and distilleries.
The Albanese government has introduced a bill to pause beer excise indexation for two years. But this applies only to tap beer – not to beer in the bottles and cans most commonly used by independent brewers. And the measure offers no assistance to spirits distillers.
Warringah is home to a vibrant craft brewing and distilling scene, including Freshwater Brewing Company, Four Pines and Manly Spirits Co. Distillery.
On Tuesday, November 25 Steggall told Parliament that breweries and distillers are “a cornerstone of the Warringah community”, employing local people and underpinning community events such as BrookieFest.
“But in recent years they have grappled with pandemic-era debt, soaring inflation and an ever-increasing excise burden,” Ms Steggall said.
More than 50 independent brewing businesses entered voluntary administration or closed in the two years to April 2025, according to the Independent Brewers Association.
In her speech, moving an Amendment to the Excise Tariff Amendment (Draught Beer) Bill 2025, Ms Steggall cited alarming figures showing:
- excise on beer and spirits has risen by about 20% since February 2020
- ingredient costs have skyrocketed - hop prices increased by up to 50% between 2020 and 2022, and malt costs rose nearly 20% between 2022-2023
- utilities and storage costs have also surged, squeezing margins for small producers.
Breweries contribute almost $2 billion to the economy each year and distillers have the potential to grow to be a $1 billion export industry by 2035.
In September last year, Ms Steggall and other crossbench MPs wrote to the Treasurer advocating for alcohol excise relief for small alcohol producers – but these producers will see few benefits from the proposed legislation.
Steggall called on the government to expand relief to include independent alcohol producers, and undertake other measures to help new and independent players thrive against large industry incumbents.
''To be very clear, this Excise Tariff Amendment (Draught Beer) Bill is only going to apply to tap beer. So all those small businesses with bottles will not get the benefit of this. So maybe pause and reflect as to why it is that the government is picking and choosing within the same industry. Only the big hotels and associations, like RSLs, and all those that have beer on tap will get a freeze in the excise. Small breweries that bottle will not get this. I am not sure that they are aware of the distinction that is happening.'' the MP for Warringah said
''Right now across Australia, and sharply felt in Warringah, our independent brewing and distilling industry is in the grip of what many describe as a recession. This industry is integral to our small-business ecosystem and yet, like many small businesses, it is being squeezed from every direction—pandemic-era debt, inflation, rising input costs and an increasingly burdensome excise tax. ''
Ms Stegall stated:
''I urge government members to have an internal discussion about why you are only picking certain areas of beer to protect or to assist with this excise freeze. The amendments that I propose recognise that the struggling brewing and distilling industries need assistance. They acknowledge the ongoing financial strain. This bill ignores so many distillers entirely.''
''These amendments call on the government to freeze indexation for all alcohol excise until 1 August 2027, not just those that have the passes to come into parliament to advocate on behalf of their industry. They call to 'index the excise remission cap annually in line with inflation' and 'extend the deadlines for payback of excise debt to the ATO'.
We need to be assisting these small businesses rather than taking a stick to them and creating an even more anticompetitive environment by assisting the big players that have access to the on-tap contracts. While I welcome that some measure has been introduced, please do the job properly, make it fair and consistent, create a competitive field for all businesses and, genuinely, put good legislation through this place.''
Ms Steggall's amendment was seconded by Independent MP for Bradfield Nicolette Boele.
Her full speech and amendment may be read here.
Debate on the Bill was adjourned when the House rose at 7.30pm on Tuesday.
The 2026 parliamentary sittings, issued 26 November 2025, states the House of Representatives will return in Autumn, 3 to 5 February.