Two trade groups, the Australian Distillers Association and Spirits & Cocktails Australia, have called on the Australian government regarding tax on spirits, which is reportedly the third highest in the world.
They have proposed a joint Pre-Budget Submission ahead of the 2023-2024 federal budget held in May, asking for "modest changes" to Australias’s spirits tax regime.
- Beginning Feb. 1, 2023, the spirits tax is due to rise by 3.7%.
- Australia's spirits tax is "unsustainable," according to the trade bodies, which is more than double the duty enforced on beer and wine.
- Distillers face a ‘comparative disadvantage’ as wine and beer producers can produce higher volumes due to lower taxes.
- The trade groups are calling on the public to reach out to local MPs and demand to ‘fix’ the spirits tax system.
- More "favorable" tax systems benefit from investment, contrary to Australia, the trade unions stated.
- In August 2022, the most significant tax increase in almost 50 years was imposed on Australian distillers.
- In December 2021, in a virtual ceremony, the U.K. and Australia signed a trade deal to eliminate a 5% tax on Scotch whisky and gin.
