Australians face paying more for beer and spirits in pubs, clubs and bottle shops from today as federal alcohol tax increases take effect.The widely-expected price hike is due to the biannual indexation increase on February 1, which means the tax on one litre of pure alcohol will be raised from $100.05 to $101.85.From today, the tax on a pint of beer will jump to 90 cents, while the tax on a slab will go to $20, the Brewers Association of Australia said.
The cost of beer and spirits is rising today as new levels of federal alcohol tax kick in. (Jim Rice)Australia now has the third highest spirits tax in the world, behind Iceland and Norway.Brewers, distillers and the hospitality industry are concerned the latest tax rise will prove another unwelcome impost for drinkers amid the cost-of-living crisis as well as threatening jobs and fuelling inflation.They point to federal government data released last week showing the automatic twice-yearly indexation of spirits tax is undermining its efforts to curb inflation.The world's most expensive country revealedView Gallery"The alcohol category was the biggest contributor to the December CPI quarter increase, accounting for a 2.8 per cent rise," said Spirits & Cocktails Australia chief executive Greg Holland.He urged the Albanese government to reconsider the automatic indexation of spirits excise, introduced in 1984.
Spirits & Cocktails Australia chief executive Greg Holland said the tax was the third highest in the world. (Nine)The tax is calculated at the point of manufacture or importation per litre of pure alcohol and then likely passed on to consumers.For example, a bottle of spirits with a higher alcohol content will be taxed at a higher rate than drinks at the lower end.Manufacturers and distillers also pay GST and other levies which can push the retail costs higher for the drinking public.Alcohol tax does not apply to wine which is subject to the wine equalisation tax.
