Australia’s spirits industry will not benefit from tax relief measures currently applied to beer after debate on alcohol taxation in the Senate was blocked.
Labor and the Greens voted against an amendment related to extending tax measures. The amendment proposed extending the excise freeze on draught beer to tap spirits. It also called for a review of the alcohol tax system.
The proposal received backing from the opposition and several independent senators. If passed, the cost-of-living measure would have applied to patrons at pubs and clubs.
Spirits & Cocktails Australia executive director Steven Fanner said the amendment had consumer support. He said the proposal also called for a review of alcohol taxation in Australia.
“To see the amendment voted down without its supporters even being provided the opportunity to debate it in the Senate is disappointing,” he said. “Mystifyingly, the Greens voted against a review of alcohol tax despite alcohol tax reform being part of its policy platform for many years.”
Industry representatives continued to call for a review of the tax system. A consumer purchasing a gin and tonic pays close to three times the tax a beer drinker pays. The amount is up to eight times that of a wine drinker. Fanner said the excise system is based on assumptions about consumption patterns that do not reflect current market conditions.
Spirits are a growing part of the product mix in bars, clubs and smaller venues. Excise on spirits is adjusted every six months. After the latest adjustment in February, about $32 in tax is collected on a standard 700ml bottle of gin or whisky.
When promoting the draught beer excise freeze, Government MPs said the policy aimed to address cost-of-living pressures and support hospitality businesses. Fanner said the current measure applies only to beer, not across alcohol categories.
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