1. Utilitarian Ground Truth

This Bill maximises overall welfare by alleviating cost-of-living and operational pressures on pubs, clubs and other licensed venues. By freezing excise rates on draught beer at current levels, the measure helps sustain small and regional hospitality businesses, preserves jobs in the sector and bolsters tourism reliant on local venues [Judgment].

Reduced duties lower the risk of price hikes that could deter patronage, thereby supporting ongoing economic activity in communities across Australia. The modest revenue forgone (an estimated $95 million over five years) is outweighed by the social and employment benefits arising from a more resilient hospitality industry [Judgment].

1. Value-Neutral / Epistemic Objection
2. Propertarianism

Freezing excise and customs duty rates on draught beer reduces government revenue by an estimated $95 million^[1], undermining fiscal discipline and setting a precedent for ad hoc tax interventions. Such revenue losses narrow the fiscal space available for essential public services and debt reduction.

There is no guarantee that licensees will pass cost savings to consumers; instead, venues might retain additional margins, diluting the intended relief for patrons [Judgment]. Moreover, retrospective tax changes can erode regulatory certainty and investor confidence, as businesses cannot reliably forecast future duty liabilities [Judgment].

1. ^{^}

   Estimated impact from Explanatory Memorandum, General outline and financial impact table.