Your favourite spirits will soon cost you more because of this new tax hike
- Replies 8
We hate to be the bearers of bad news, but it seems like all the booze lovers out there might have to dig a little deeper into their wallets if they want to keep enjoying their favourite tipple.
That's because, according to recent reports, the tax on spirits has just jumped to a whopping $100 per litre for the first time ever—and it looks like this isn't going away anytime soon.
This tax hike was imposed in April, and there's no indication that it will be reduced anytime soon. As a result, Australians now find themselves among the highest-taxed spirits drinkers in the world.
Currently, the taxation is linked to the Consumer Price Index (CPI) and is revised twice a year. So, if the CPI continues to rise, unfortunately, the tax on spirits will likely follow suit.
According to the Australian Distillers Association, this really isn't going to help anyone. Not the businesses, not the shops stocking the shelves, and definitely not the customers either.
The association's Chief Executive Paul McLeay believes the government needs to reconsider this 'punitive excise regime', as allowing it to persist will 'disincentivise producers to invest in and grow their businesses'.
That's because, similar to any other industry, taxation influences how much businesses can realistically spend.
Unfortunately, this tax hike couldn't have come at a worse time—with the association already witnessing multiple insolvencies since the start of the year. It's tough for business, and it's tough in terms of competitiveness for customers too.
'Unfortunately, we have already witnessed a few insolvencies this year, and this latest spirits tax increase will be extremely difficult for distillers to stomach,' McLeay added.
Currently, Australia has the third-highest spirits tax globally, trailing behind only Norway and Japan.
This high tax rate poses challenges for Australian distilleries, as they heavily rely on competitive pricing to boost sales and invest in their businesses. Unfortunately, the burden of high spirits tax might hinder their ability to achieve these goals, potentially impacting their growth and profitability.
It's definitely an issue that requires careful consideration and critical re-examination. Spirits & Cocktails Australia's Chief Executive Greg Holland could not agree anymore, agreeably summing up his opinion by asking, 'If not now, when will it stop?'
'Approaching the $100 per litre threshold six years earlier than previously forecast must surely give the Federal Government pause to reconsider this handbrake on the spirits industry,' he said.
In addition, Diageo Australia's Managing Director Angus McPherson also voiced his opinion on the matter, saying that the current taxation is becoming 'unbearable'.
'We know our loyal Bundy consumers love our product, but many of them don't know that more than 60 per cent of the money they already pay for a bottle of Bundaberg Rum UP goes straight to the taxman in Canberra, and that tax keeps growing and growing,' he said.
In simple terms, this means that the prices of popular alcoholic drinks are likely to increase, which could affect the drinks many Aussies love. It's a lot to take in, but it's important to keep a level head and think, what can we do to help?
One way is to support your local distilleries and small businesses, and it doesn't always have to be in a financial form; sometimes, a quick online post here and there can already make a big difference.
And should worse come to worst, remember that it's always possible to find cheaper alternatives! For those who have to pinch their budgets, discount liquor stores popping up in major cities are definitely worth a visit.
Members, have you noticed any difference in alcohol prices lately? Let's stay positive and hope this high tax doesn't stop us from enjoying our favourite tipples. Cheers, everyone!
That's because, according to recent reports, the tax on spirits has just jumped to a whopping $100 per litre for the first time ever—and it looks like this isn't going away anytime soon.
This tax hike was imposed in April, and there's no indication that it will be reduced anytime soon. As a result, Australians now find themselves among the highest-taxed spirits drinkers in the world.
Currently, the taxation is linked to the Consumer Price Index (CPI) and is revised twice a year. So, if the CPI continues to rise, unfortunately, the tax on spirits will likely follow suit.
Australia's tax on spirits is set for another hike next month. Credit: Pexels/Kelly.
According to the Australian Distillers Association, this really isn't going to help anyone. Not the businesses, not the shops stocking the shelves, and definitely not the customers either.
The association's Chief Executive Paul McLeay believes the government needs to reconsider this 'punitive excise regime', as allowing it to persist will 'disincentivise producers to invest in and grow their businesses'.
That's because, similar to any other industry, taxation influences how much businesses can realistically spend.
Unfortunately, this tax hike couldn't have come at a worse time—with the association already witnessing multiple insolvencies since the start of the year. It's tough for business, and it's tough in terms of competitiveness for customers too.
'Unfortunately, we have already witnessed a few insolvencies this year, and this latest spirits tax increase will be extremely difficult for distillers to stomach,' McLeay added.
Currently, Australia has the third-highest spirits tax globally, trailing behind only Norway and Japan.
This high tax rate poses challenges for Australian distilleries, as they heavily rely on competitive pricing to boost sales and invest in their businesses. Unfortunately, the burden of high spirits tax might hinder their ability to achieve these goals, potentially impacting their growth and profitability.
It's definitely an issue that requires careful consideration and critical re-examination. Spirits & Cocktails Australia's Chief Executive Greg Holland could not agree anymore, agreeably summing up his opinion by asking, 'If not now, when will it stop?'
'Approaching the $100 per litre threshold six years earlier than previously forecast must surely give the Federal Government pause to reconsider this handbrake on the spirits industry,' he said.
In addition, Diageo Australia's Managing Director Angus McPherson also voiced his opinion on the matter, saying that the current taxation is becoming 'unbearable'.
'We know our loyal Bundy consumers love our product, but many of them don't know that more than 60 per cent of the money they already pay for a bottle of Bundaberg Rum UP goes straight to the taxman in Canberra, and that tax keeps growing and growing,' he said.
In simple terms, this means that the prices of popular alcoholic drinks are likely to increase, which could affect the drinks many Aussies love. It's a lot to take in, but it's important to keep a level head and think, what can we do to help?
One way is to support your local distilleries and small businesses, and it doesn't always have to be in a financial form; sometimes, a quick online post here and there can already make a big difference.
And should worse come to worst, remember that it's always possible to find cheaper alternatives! For those who have to pinch their budgets, discount liquor stores popping up in major cities are definitely worth a visit.
Members, have you noticed any difference in alcohol prices lately? Let's stay positive and hope this high tax doesn't stop us from enjoying our favourite tipples. Cheers, everyone!
.png){kind=icon}
what planet are you from lady?the planet dope
