Clubs New Zealand Backs Industry Call For Targeted Reduction To Draft Beer Excise

Clubs New Zealand is calling on the Government to introduce a 50% reduction to excise tax on draught beer sold for on-premises consumption, supporting the wider industry's push for a more balanced and sustainable approach to alcohol taxation. This adjustment would directly support community clubs, hospitality venues and local breweries at a time when operating costs continue to rise.

Chief Executive Lucy Waterreus says the current excise settings are contributing to an affordability problem that is pushing people away from supervised licensed venues such as clubs and into private drinking environments.

"Our clubs operate as community hubs that are safe, welcoming places where people connect. But year after year we are being hit with excise increases that flow straight through to the price of a pint. Members on fixed incomes feel those increases immediately and many simply stay home. That's not good for community connection, and it's not good for responsible consumption."

Industry data shows that the share of beer consumed in on-premise venues has fallen sharply over the past decade, from roughly 40% to about 15%, with the cost of going out identified as a major driver of that decline. Surveys indicate that nearly half of New Zealand's sometimes choose to drink at home because of price, and this jumps significantly among people who regularly drink draught beer.

"A targeted reduction for draught beer is a simple, practical fix that supports the places where safer drinking happens and will going a long way to ensuring our clubs and community venues remain viable and accessible."

Internationally, countries such as Australia and the United Kingdom have already adopted differentiated excise settings that recognise the community and economic value of on-premises venues.

"Our clubs are staffed by locals, supported by volunteers and used by members who rely on them for connection. A modest, targeted change would help protect jobs, keep clubs viable and promote consumption within responsible, licensed venues."

Clubs New Zealand is urging the Government to adopt the 50% reduction to draught beer excise ahead of the 2026 indexation cycle.

Note:

Clubs New Zealand Incorporated (Clubs New Zealand) is a not-for-profit, member led association representing more than 300 clubs around the country including Community Clubs, Cosmopolitan Clubs, Workingmen’s Club, Sports Clubs, and Returned Servicemen’s Associations (RSAs). Collectively our clubs employ more than 3,000 people and are a home away from home to over 300,000 club members.

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