Aussies might be seeing a price hike in liquor products in the next couple of months if biannual tax increases prevail, according to a liquor industry lobby group.

Spirits and Cocktails Australia called on the suspension of tax increases on alcohol products for three years to help the industry stay profitable as increasing taxes could be passed onto consumers.

“The Australian way is to give a hand in a time of crisis, but instead this government has given us a hike – the fourth brutal tax hike since Covid arrived on our shores,” said Spirits and Cocktails Australia chief executive Greg Holland.

Spirits and Cocktails Australia said that the bi-annual tax increase on liquor products may lead to price hikes. Credit: iStock/Rawf8.​

The Australian Taxation Office (ATO) announced this week that the rate on spirits would increase from $88.91 per litre of pure alcohol to $90.78 from next month.

The move means that the price of a case of 24 Bundaberg rum and coke cans — which are taxed at the same rate as hard liquor — will increase more than $20 in the next few months and up to over $100 within a decade.

Market prices of the said liquor product are currently between $74 and $77 for a case.

It should be noted that ATO increases the excise tax of booze in accordance with the inflation rate, with the most recent change observed at an increase of about 2.1 per cent.

A case of 24 Bundaberg rum and coke cans will increase more than $20 in the next few months and up to over $100 within a decade. Credit: news.com.au.​

However, the claims by the industry body were slammed by a leading non-profit organisation working to minimise alcohol-related harm, saying that the request of the group was a "slap in the face" for taxpayers.

Caterina Giorgi, the chief executive of the Foundation for Alcohol Research and Education, said that data shows that the liquor industry did not suffer major losses during the pandemic — in fact, booze firms had profited and alcohol-related health emergencies have increased.

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

Melbourne market research company Roy Morgan reported last year that the liquor industry has raked in $15.6 billion in retail sales in 2020, a 26.7 per cent increase in 2019.

Ms Giorgi said: “Right now, our focus should be ensuring resources go towards people’s health and wellbeing, not the deep pockets of alcohol companies.”

What are your thoughts? Share them with us in the comments below!

 

[Dizzy]

Damn lnp. They claim not to over tax but they do it by stealth every time.

 

[Itene]

I believe petrol & liquor excise increases every six months & this has been going on for many years. It’s about time it stops now & does not increase again.

 

[ian balnaves]

Does a Workers Pay go up every Six Months shit No only TAX.

 

[Lindyloo]

Liquor lobby group says booze price hike should be expected, opposing non-profit says otherwise​

Aussies might be seeing a price hike in liquor products in the next couple of months if biannual tax increases prevail, according to a liquor industry lobby group.

Spirits and Cocktails Australia called on the suspension of tax increases on alcohol products for three years to help the industry stay profitable as increasing taxes could be passed onto consumers.

“The Australian way is to give a hand in a time of crisis, but instead this government has given us a hike – the fourth brutal tax hike since Covid arrived on our shores,” said Spirits and Cocktails Australia chief executive Greg Holland.

Spirits and Cocktails Australia said that the bi-annual tax increase on liquor products may lead to price hikes. Credit: iStock/Rawf8.​

The Australian Taxation Office (ATO) announced this week that the rate on spirits would increase from $88.91 per litre of pure alcohol to $90.78 from next month.

The move means that the price of a case of 24 Bundaberg rum and coke cans — which are taxed at the same rate as hard liquor — will increase more than $20 in the next few months and up to over $100 within a decade.

Market prices of the said liquor product are currently between $74 and $77 for a case.

It should be noted that ATO increases the excise tax of booze in accordance with the inflation rate, with the most recent change observed at an increase of about 2.1 per cent.

A case of 24 Bundaberg rum and coke cans will increase more than $20 in the next few months and up to over $100 within a decade. Credit: news.com.au.​

However, the claims by the industry body were slammed by a leading non-profit organisation working to minimise alcohol-related harm, saying that the request of the group was a "slap in the face" for taxpayers.

Caterina Giorgi, the chief executive of the Foundation for Alcohol Research and Education, said that data shows that the liquor industry did not suffer major losses during the pandemic — in fact, booze firms had profited and alcohol-related health emergencies have increased.

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

Melbourne market research company Roy Morgan reported last year that the liquor industry has raked in $15.6 billion in retail sales in 2020, a 26.7 per cent increase in 2019.

Ms Giorgi said: “Right now, our focus should be ensuring resources go towards people’s health and wellbeing, not the deep pockets of alcohol companies.”

What are your thoughts? Share them with us in the comments below!

Part of the reason for the price hike is because of the trade sanctions China has placed on our winegrowers, And yes, tax increases should be delayed to allow the industry to recover!