Australia’s spirits industry is calling on the Government to address the new two-tiered tax system that it has created by freezing excise on draught beer, while ignoring the country’s spirits drinkers.
The Federal Government has announced its is freezing indexation on draught beer for two years from August 2025 to help pubs, clubs and their customers, however consumers ordering spirits, cocktails and RTDs at pubs and clubs across the country may be met with higher prices from Monday, 4 August.
Both Spirits and Cocktails Australia, and the Australian Distillers Association have said a freeze on spirits excise would further the Government’s support for pubs, clubs and bars.
Australian Distillers’ General Manager Cameron Mackenzie said: “This tax hurts our customers and more than 700 distillers across the country who want to share more of our products at Aussie pubs and clubs. We want a system that doesnʼt favour one drink over another.
“Australia is home to globally-renowned distilleries that are exactly the kind of modern manufacturing Australia needs more of – not less – to boost productivity. Helping to ease the burden of these twice-yearly tax hikes that act as a handbrake on industry, and punish our consumers, should be a priority.”
The current system of spirits excise was introduced by Paul Keating in 1983, with excise increasing twice a year in line with the Consumer Price Index. The increase to spirits excise next month will be the 77th consecutive increase in spirits excise since then.
A spokesperson for Spirits and Cocktails Australia said: “We support the freeze in place for draught beer. What we are asking for is for the federal government to recognise that this tax relief should go to anyone approaching the bar, no matter what they drink, whether it be a schooner of beer, a gin and tonic or a premix RTD.
“We are seeing cocktails and RTDs becoming more and more popular in pubs and clubs across the country and we should ensure those customers arenʼt left out when the freeze on beer comes into effect in August.”
Night Time Industries Association CEO Mick Gibb added: “Our members support the two-year tax freeze the federal government has applied to draught beer from August, but this relief should be extended to spirits and RTDs served in licensed venues too.
“Australia hosts a vibrant night-time economy enjoyed by people from all walks of life. This relief should extend to everyone, no matter their drink preference.”
With the tax on spirits already at $104.31 per litre of alcohol before next month’s excise increase, Australia is home to one of the world’s highest tax rates for spirits and RTDs.