Beer, spirits face worth hike as alcohol excise jumps 1.8 per cent

Beers, spirits and pre-mixed drinks are set to be dearer from Monday when federal taxes on alcohol are hiked but once more.

The worth rise is due the federal authorities’s excise on alcohol, which robotically rises twice a 12 months in February and August, and is decided by adjustments within the annual inflation price — presently at 4.1 per cent.

Underneath the adjustments, one litre of pure alcohol will now be topic to $101.85 cents of excise — up from $100.05 — an increase of 1.8 per cent.

From Monday, a pint will enhance by about 90c, whereas a slab might be roughly $20 dearer, in keeping with the Brewers Affiliation.

With price range papers forecasting the alcohol excise is about to rake in nearly $7.9bn into authorities coffers this monetary 12 months, Finance Minister Katy Gallagher final Thursday mentioned the value hike was an everyday prevalence.

“In relation to the indexation preparations which might be round alcohol, that is one thing that occurs,” she mentioned.

“This occurs … as regular sort of course of enterprise for governments of each persuasions, these are the tax preparations that stay in place.”

Nevertheless, Ms Gallagher didn’t rule out altering excise charges sooner or later amid the present value of residing crunch.

“We take a look at these issues each price range, we take a look at what’s doable, what’s inexpensive,” she mentioned.

Wine is just not topic to the alcohol excise, with the wine equalisation tax relevant as a substitute.