Spirits tax in Australia rises to $108 a litre

With the increase in alcohol tax in Australia, the cost of alcoholic beverages is expected to increase across the country.

As of Monday, the price of alcoholic beverages rose to $107.99 per liter, in line with twice-yearly inflation.

This increase represents the 78th time that the excise tax on alcoholic beverages in Australia has increased in line with inflation since 1983.

But alcohol drinkers can expect to pay more under the new tax, while draft beer drinkers have been given some relief by a two-year excise tax freeze.

Some in the industry have criticized the government, claiming it is creating further bias between different categories of drinks.

“Spirits are taxed more than beer or wine, and the tax increases every six months,” said Steven Fanner, managing director of Spirits & Cocktails Australia.

“Alcoholic beverages are becoming a growing part of the product mix for pubs, clubs and small bars and appeal to a wide range of consumers, particularly women and young adults.”

Mr Fanner said the tax would mean around $32 of the price of a standard 700ml bottle of gin or whiskey would go directly to the Government.

As Parliament prepares to restart debate this week on a draft beer duty freeze, those in the country’s spirits industry are calling on the government to extend the freeze to spirits served on tap in bars and clubs.

Meanwhile, Mick Gibb, chief executive of the Night Time Industries Association, said the high tax rate on alcoholic drinks continues to challenge both consumers and venue owners.

“We have seen real progress in promoting 24-hour vibrant cities in recent months, but for many consumers the rising prices of mixed drinks or cocktails are making going out a luxury,” he said.

“For venue owners, especially those with smaller pubs, these twice-a-year tax increases are becoming very difficult to accept and even more difficult to budget for.”