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Posted: 2024-09-23 03:06:22

David Littleproud faces a backlash from senior Liberals over the National Party leader's "freelancing" pledge to consider freezing beer excise under a future Coalition government.

Shadow Treasury spokesman Angus Taylor has bluntly shut down the move after Mr Littleproud was reported in Sunday newspapers saying "we are looking at" beer tax reform amid concerns the current level of excise is "hitting a tipping point".

The Nationals leader is scheduled to meet with the Australian Hotels Association in Coffs Harbour on Monday alongside local NSW north coast MP Pat Conaghan, who has moved a private members bill to halt future increases.

Asked about the freeze, Mr Taylor's office responded by saying the best way to deal with pressure on beer makers and consumers is to address rising business and living costs.

"The starting point to reducing the pressure of indexation is to get inflation down," Mr Taylor said in a statement sent to the ABC.

It is understood Mr Taylor has told colleagues there is no plan to change the excise regime.

In an interview with Sky News on Monday, opposition finance spokeswoman Jane Hume also appeared to knock it on the head.

"I always like the idea of… free beer. But unfortunately, that might not be the policy slogan that you'll be seeing us going into the election with," she said.

Senator Hume said inflation has been a factor in driving excise hikes.

Beer prices have been rising steeply, with the cost of a pub pint heading towards as much as $18. Australia's beer excise is one of the steepest in the world and contributes about $1 to the cost of a mid-strength beer, and the GST adds another 10 per cent.

Duty rates are adjusted twice a year in February and August based on changes to the ABS consumer price index.

Price pressures have led to a spate of brewery closures over the past year, including the Riverina's Tumut River Brewing Co, which closed on Sunday.

"Many of our small businesses are going to start laying off staff because people won't have money for another increase in excise," Mr Littleproud told the Sunday Telegraph.

"We've seen 18 consecutive increases in excise.

"We are looking at it in totality with other tax changes."

Mr Taylor said that while in government the Coalition implemented "measures to bring down the price of alcohol and support local beer and spirits industries".

"The Coalition is committed to delivering lower, simpler, fairer taxes for Australians and we will announce those policies before the election."

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