- Australia’s spirits tax, already among the highest in the world, will rise to $107.99/litre today
- Peak bodies are calling for the freeze on draught beer to be extended to spirits-based beverages
- High alcohol tax rates continue to impact Australia’s night time economy
Monday, February 2, 2026: Australia’s tax on spirits, already the highest in the world outside of Scandinavia, will rise once again today to $107.99 per litre of alcohol. The automatic tax-hike will impact hospitality venues, distillers and consumers who prefer a mixed-drink or a cocktail.
Australia’s decades-old alcohol taxation system means the excise on spirits rises twice a year, every year, in line with inflation. While the Government has provided temporary relief to draught beer drinkers, via a two year excise freeze, those who prefer gin and tonic or a vodka soda have no respite from the rising tax.
“Spirits are a growing part of the product mix for pubs, clubs and small bars and appeal to a wide variety of consumers, particularly women and younger adults”, said Spirits & Cocktails Australia executive director, Steven Fanner.
“Spirits are taxed more than beer or wine, and the tax increases every six months. This latest rise will mean around $32 of the price of a standard 700mL bottle of gin or whisky is tax going straight to the Government.”
With the Parliament set to resume debate this week on the Government’s draught beer freeze, MPs are being urged to support an amendment to extend the freeze to tap spirits served over the bar in pubs and clubs.
“Applying the freeze to tap spirits as well as tap beer would ensure many more people having a drink with friends on a Friday night benefit from this sensible cost-of-living measure,” Mr Fanner said.
Night Time Industries Association chief executive Mick Gibb said state governments were making meaningful progress in revitalising their night time economies, but the high tax rate on spirits continued to challenge both consumers and venue owners.
“We’ve seen some real progress in recent months to foster vibrant 24-hour cities, but for many consumers the rising price of a mixed-drink or a cocktail makes going out a luxury.
“For venue owners, particularly those with small bars, these twice-yearly tax hikes become very difficult to wear and even harder to budget for.”
ENDS
More information on alcohol taxation rates can be found:
https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/excise-on-alcohol/excise-duty-rates-for-alcohol
