Freeze the Spirits Excise: Give Bars a Fighting Chance
Cost of living is going up. Spirits tax is going up. Venues are going under.
Twice a year, the Federal Government increases the spirits excise in line with CPI. For small and independent bars, especially those championing Australian-made products, it’s a silent killer.
The NTIA is calling on the Federal Government to pause these automatic increases for 24 months and urgently review Australia’s outdated alcohol tax system.
Why It Matters
Right now, hospitality venues are navigating intense economic pressure:
- Rising costs for rent, wages, energy, insurance
- Falling patronage due to broader cost-of-living pressures
- Constantly shrinking margins
Operators are left with three unappealing choices:
- Pass the cost on to price-sensitive patrons where even a small increase is noticed
- Cut back on cultural and entertainment offerings
- Absorb the cost and hope they can survive
None of these are sustainable.
Spirits are at the heart of the small bar experience. But the current tax regime penalises those who want to serve locally distilled, high-quality spirits and makes it harder for venues to stay afloat.
What We’re Calling For
The NTIA is urging the Federal Government to:
- Pause CPI increases to the spirits excise for at least 24 months
- Undertake Recommendation 16 of the Food for Thought report by launching a full inquiry into the alcohol taxation system
- Meet with industry operators in Sydney, Melbourne and Brisbane to see first-hand the impact on venues and the communities they serve
The Bigger Picture
The night-time economy is more than just bars. It’s a $188 billion industry that supports over a million jobs and adds enormous cultural value to our cities and towns. But behind the numbers are thousands of small businesses doing it tough.
With the right policy settings, we can not only survive—we can thrive.
Join the Campaign
If you operate a bar, venue, distillery, or work in the hospitality industry—we need your voice.
Sign up below to join the campaign for a fairer tax system for spirits and a stronger future for Australia’s night-time economy.
