Alcohol prices

Alcohol prices rise in Australia due to Australian Taxation Office tax increases

Beware, the price of alcohol could skyrocket with a case of one of Australia’s favorite drinks set to cost $20 more in coming years due to tax hikes

  • Australian consumers could soon pay more for alcohol thanks to new ‘tax increases’
  • The Australian Taxation Office is currently increasing the liquor manufacturers tax twice a year
  • Recent increase from $88.91 per liter of pure alcohol to $90.78 starting next month
  • The Alcohol Research and Education Foundation calls for a ‘slap in the face’

The price of some of Australia’s favorite drinks could soon skyrocket thanks to alcohol tax hikes.

Liquor industry lobby group Spirits and Cocktails Australia says a case of Bundaberg rum and cola could rise by more than $20 over the next decade due to tax hikes.

The group has called for biannual tax increases on pure alcohol to stop for three years to give producers a break.

Twice a year the Australian Taxation Office raises excise duty rates on alcohol and this week announced an increase from $88.91 per liter of pure alcohol to $90.78 from next month .

Twice a year the Australian Taxation Office raises excise duty rates on alcohol and this week announced an increase from $88.91 per liter of pure alcohol to $90.78 from next month .

Excise duty refers to the tax that manufacturers pay for the production of certain goods.

If the trend of recent “tax hikes” continues, the costs of alcohol products for Australians are also expected to rise.

Over the next decade, the price of a 24-pack of Bundaberg rum and cola could skyrocket to $100, as it is taxed the same as hard liquor.

Major retailers currently charge between $74 and $77.

Spirits and Cocktails Australia has urged the ATO to reconsider tax increases as they prevent the industry from remaining profitable.

Spirits and Cocktails Australia has urged the ATO to reconsider the tax increase as costs could be passed on to customers and see 24 packs of Bundaberg rum and cola sold for $100

Spirits and Cocktails Australia has urged the ATO to reconsider the tax increase as costs could be passed on to customers and see 24 packs of Bundaberg rum and cola sold for $100

‘The Australian way is to lend a helping hand in times of crisis, but instead this government has given us a hike – the fourth brutal tax hike since Covid arrived on our shores,’ said the general manager Greg Holland. news.com.

However, recent figures show that Covid was anything but a “time of crisis” for the alcohol sector.

A Roy Morgan analysis from last year found alcohol retail brought in $15.6 billion in 2020, a 26.7% increase from 2019.

The Alcohol Research and Education Foundation’s chief executive, Caterina Giorgi, said that while businesses had thrived on the Covid pandemic, alcohol-related ambulance calls had also increased.

She thinks that an increase in the prices of alcoholic products would be just another “slap in the face” for taxpayers.

Caterina Giorgi, chief executive of the Foundation for Alcohol Research and Education, said a price increase would be a

Caterina Giorgi, chief executive of the Foundation for Alcohol Research and Education, says a price hike would be a ‘slap in the face’ for taxpayers, as World Health Organization research proves that a price increase could be beneficial

“At a time when our healthcare system and our hospitals are overwhelmed and people are doing it really hard, it’s a slap in the face for all of us to see liquor companies, who are making super profits, asking for more money. taxpayers,” Ms Giorgi said.

“At this time, our focus should be on ensuring that resources are directed towards the health and well-being of people, not the deep pockets of alcohol companies.”

However, research from the World Health Organization has shown that increasing the price of alcohol can actually benefit a population.

Research shows that increasing the price of alcoholic products leads to reduced demand for the product and fewer alcohol-related problems in a population.