The inclusion of alcohol tax for review in the Tax Whitepaper process as announced by the Federal Government today has been welcomed by the Brewers Association.
Brewers believe that the alcohol taxation system in Australia generally works well; however, inequities do exist within the system that requires an objective, broad and thorough review.
The current category approach to alcohol taxation in Australia creates flexibility, not complexity, but questions remain as to equity between categories.
While Brewers remain concerned with the relatively high levels of alcohol taxation in Australia in comparison to other countries, our focus during the Whitepaper process will be on providing a long-term solution to resolving distortions in an equitable manner.
We look forward to participating in the Taxation Whitepaper Process.
- Brewers Association of Australia and New Zealand represents major brewing interests in both countries, covering approximately 95% of the beer market.
- Revenue estimates from alcohol taxation (excise and WET) in Australia for 2014-15 totals at $6.9 billion, which represents $2.4 billion from beer, $1.9 billion from spirits, $0.78 billion from wine and $0.98 billion from other alcoholic beverages (including RTDs).
- The Brewers Association supports a category based approach to alcohol taxation, where a band of excise rates attributed to each alcohol category (beer, wine & spirits) is determined by the characteristics of a category and the differences between the categories.