The Australian spirits industry has acknowledged today’s inflation figures, while stressing they provide no redress for five years’ worth of excessive tax increases.
Spirits & Cocktails Australia chief executive Greg Holland said that the latest excise increase has failed to alleviate the burden of having the third highest excise rate in the world.
“Today’s inflation figures are excellent news for the broader economy, but the fact remains that spirits tax is now 20% higher than it was before inflation took off during the pandemic,” he said.
“The latest tax increase, which takes Australia’s spirits excise to $104.31 per litre of alcohol, will make it more expensive for consumers, more expensive for producers, and less competitive for spirits exporters.”
Australian Distillers Association chief executive Paul McLeay said the Government’s persistence with six-monthly tax increases is at odds with its economic goals.
“Last week, the Prime Minister outlined his commitment to Building Australia’s Future by ‘connecting communities with economic opportunity’,” said McLeay.
“There are 700 spirits manufacturers in Australia, half of which are based in regional areas.
“With the right policy settings, the Australian spirits industry can deliver $1 billion in exports in the next decade.
“That’s why we’re calling on the Federal Government to provide immediate support by freezing spirits excise and working with us to accelerate spirits exports.
“Not only will this deliver on the Government’s trade diversification goals, but it will also support the economic priorities of growing domestic manufacturing and increasing employment opportunities, particularly in the regions,” he said.
ENDS.
Media contact:
James Atkinson, Media & Communications Manager
Email: jatkinson@spiritsandcocktails.au | Mobile: +61 416 870 827
