Cocktails and pre-mixed drinks are set to become more expensive as Australia’s spirits tax increased today in line with its twice-yearly inflation adjustment. The excise has risen to $107.99 per litre, adding further cost pressure on spirits consumers.
While the government has granted temporary relief to draught beer drinkers through a two-year excise freeze, spirits remain excluded from the measure. Spirits and Cocktails Australia Executive Director Steven Fanner said spirits continue to be taxed more heavily than beer and wine, with the tax rising every six months.
He noted that spirits are an increasingly popular choice in pubs, clubs and small bars, particularly among women and younger adults. According to Fanner, the latest increase means about $32 of the retail price of a standard 700mL bottle of gin or whisky now goes directly to the government as tax.
Parliament is expected to resume debate this week on the draught beer excise freeze. Fanner urged lawmakers to extend the freeze to spirits-based drinks served on tap, arguing that it would allow more people to benefit from cost-of-living relief when socialising.
Night Time Industries Association Chief Executive Mick Gibb said that although state governments have made progress in revitalising night-time economies, the rising tax on spirits continues to burden both consumers and venue operators. He warned that increasing cocktail and mixed-drink prices are making nights out less affordable, while twice-yearly tax hikes are becoming increasingly difficult for small bar owners to absorb and plan for.
