SYDNEY, AUSTRALIA – New Alcohol Tax Takes Effect in Australia As of August 4, the excise duty on spirits in Australia will increase to keep pace with inflation, resulting in higher prices for consumers.
The move is part of a twice-yearly indexation update, which is based on the upward movement of inflation.
The Australian Taxation Office has confirmed that the excise duty on spirits will rise by $1.67 per litre, bringing the total to $105.98 per litre.
This increase will have a significant impact on the spirits industry, which is already struggling with the cost-of-living crisis.
The Australian Distillers Association has expressed disappointment over the tax hike, stating that it will hit not only distillers but also hospitality venues and consumers.
“It’s not just another tax hike, it’s a significant one that distillers and hospitality venues simply can’t absorb,” said General Manager Cameron Mackenzie.
“In the end, it’s customers who’ll be left paying more for their favourite spirits.”
The industry has been struggling for decades, and many fear that this increase will lead to higher prices for consumers.
The cost-of-living crisis is already forcing people to stay at home to save money, and this tax hike may exacerbate the issue.
As Amanda Lampe, chair of Bundaberg Distilling Co., warned last year, “What our drinkers are telling us is that it’s becoming a luxury to have a drink with their friends on a Friday evening, and that’s really sad.”
The public is advised to expect higher prices for spirits-based drinks from August 4.
Meanwhile, beer drinkers have been spared from a similar price hike this month, following concerns raised by brewers and pubs about the impact on the industry.