2025-26 Federal Budget: Indirect taxes
• beer excise, tariffs,
Freezing indexation on draught beer excise and excise equivalent customs duty rates
Indexation on draught beer excise and excise equivalent customs duty rates will be paused for a 2‑year period from August 2025.
Biannual indexation of draught beer excise and excise equivalent customs duty rates due to occur in August 2025, February 2026, August 2026, and February 2027 will not take place. Biannual indexation will recommence from August 2027.
The Coalition announced on 1 March 2025 that, if elected, it would also freeze indexation on draught beer excise for 2 years.
Source: Budget Paper No 2, p 8; Prime Minister and Treasurer, Albanese Labor Government to freeze draught beer excise [joint media release], 1 March 2025; Shadow Treasurer, Coalition backs struggling hospitality sector left in ruins by Labor [media release], 1 March 2025.
Excise remission cap and WET producer rebate to increase for alcohol manufacturers
The excise remission cap is proposed to be increased from $350,000 to $400,000 each financial year for all eligible alcohol manufacturers, including brewers and distillers, from 1 July 2026. The Wine Equalisation Tax (WET) producer rebate would similarly increase from $350,000 to $400,000 each financial year from 1 July 2026.
Source: Budget Paper No 2, p 8; Prime Minister, Treasurer and Minister for Trade and Tourism, Albanese Government provides tax relief to support investment and jobs [joint media release], 22 February 2025.
Additional tariffs to be extended on goods from Russia and Belarus
Additional tariffs on goods that are the produce or manufacture of Russia or Belarus will be extended by a further 2 years, to 24 October 2027.
The temporary measure continues to deny Russia and Belarus access to the most favoured nation status through the application of an additional 35% tariff on goods that are the produce or manufacture of Russia or Belarus and had not left for direct shipment to Australia from a place of manufacture or warehouse before 25 April 2022.
Source: Budget Paper No 2, p 3.