SUMMARY OF ALTERATIONS
EXCISE TARIFF PROPOSAL (No. 1) 2025
CUSTOMS TARIFF PROPOSAL (No. 1) 2025
Reasons for changes: To take pressure off the price of beer supplied on tap in pubs, clubs and other licensed venues, supporting businesses, regional tourism and customers across Australia.
Date of effect: 1 August 2025 (unless in relation to that date, section 6A of the Excise Tariff Act 1921 and section 19 of the Customs Tariff Act 1995 have the effect of replacing a rate of duty on a later day, in which case the date of effect is that later day).
Alterations to the Excise Tariff Act 1921
Alterations to the Customs Tariff Act 1995
A duty of excise (excise duty) is a duty imposed on fuel, alcohol and tobacco produced in Australia. When these types of goods are imported, they are known as excise‑equivalent goods under the Customs Acts (within the meaning of the Customs Act 1901), and are subject to a duty of customs (customs duty). The rates of excise duty that applies to fuel, alcohol and tobacco that are locally‑produced goods are equivalent to the rates of customs duty that apply to excise‑equivalent goods that are imported into Australia.
In the 2025-26 Federal Budget, the Government announced a pause on indexation on draught beer excise and excise-equivalent customs duty rates for a two-year period, starting from 1 August 2025.
The alterations proposed are to have the effect of inserting new section 6L in the Excise Tariff Act 1921 (Excise Tariff Act) and inserting new section 19AABC in the Customs Tariff Act 1995 (Customs Tariff Act) to pause the Consumer Price Index indexation that applies to the rate of customs duty and the rate of excise duty for draught beer on 1 August 2025, 1 February 2026, 1 August 2026 and 1 February 2027.
“Draught beer” means beer in certain bulk containers. This includes individual containers of draught beer of 8-48 litres (inclusive) that are designed to be connected to a pressured gas delivery system or pump delivery system or other prescribed system, and any individual container over 48 litres, classified under subitems 1.2, 1.6 and 1.11 of the Excise Tariff Act, and to subheadings 2203.00.63, 2203.00.65, 2203.00.67, 2203.00.71, 2203.00.72, 2203.00.79, 2206.00.72, 2206.00.76, 2206.00.78, 2206.00.82, 2206.00.83 and 2206.00.89 in Schedule 3 to the Customs Tariff Act and in Schedule 4A or a later Schedule that relates to a subheading in Schedule 3 of the Customs Tariff Act.
The effect of the Tariff Proposals is that the duty rates for draught beer as they are on 31 July 2025 will be unchanged for the next two years.
When indexation resumes on 1 August 2027, the indexation factor for that day will be applied against these unchanged duty rates.