New alcohol tax to hit Aussies again from today after ‘disappointing’ move

While beer drinkers will be spared from another price hike this month, those who prefer spirits will have to dig a little deeper into their wallets. The government put a pause on the alcohol excise duty for beer after serious concerns were raised by brewers and pubs about the impact it was having on the industry.

But that election goodwill didn’t extend to those who drink vodka, rum, whisky, gin and other spirits. A spokesperson for the Australian Taxation Office told Yahoo Finance the excise undergoes a twice-yearly indexation update “based on the upward movement” of inflation, and Monday will be the second time this year that this type of booze goes up in price.

“This is incredibly disappointing,” Australian Distillers Association general manager Cameron Mackenzie said.

“It’s not just another tax hike, it’s a significant one that distillers and hospitality venues simply can’t absorb.

“In the end, it’s customers who’ll be left paying more for their favourite spirits.

“The Australian distilled spirits industry drives local manufacturing, creates jobs and boosts tourism and hospitality with 50 per cent of distilleries located in regional communities. This tax hike hits everyone: producers, venues and consumers who’ll see higher prices for their favourite gin and tonic.”

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At the last increase in February, spirits exceeding 10 per cent by volume of alcohol went up from $103.89 per litre to $104.31 per litre.

As of August 4, a $1.67 increase will bring that price to $105.98 per litre.

Distillers will have to decide whether to pass that cost onto hospitality venues, who will have to make the same decision on passing it onto consumers.

It’s a war that has been going on in the industry for four decades, but many in the industry are being pushed to the brink.

This comes at a time when many in the alcohol industry fear the cost-of-living crisis is forcing people to stay at home to save money.

Bundaberg Distilling Co. chair Amanda Lampe sounded the alarm about this issue last year and warned this twice-yearly change was changing the way Aussies looked at socialising.

“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,” she told Yahoo Finance.