New Alcohol Tax Hits Aussies Where It Hurts

Alcohol prices are on the rise again in Australia as quiet changes take effect. Here’s what it means for your next night out—or your next bottle.

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New Alcohol Tax Hits Aussies Where It Hurts
Credit: Canva | en.Econostrum.info - Australia

Alcohol is getting more expensive in Australia — again. It’s not the bars, it’s not the brands. It’s a quiet tax hike that hits twice a year, like clockwork.

Australia’s Alcohol Tax Quietly Climbs — Again

Twice a year, the alcohol tax in Australia goes up. No press conference, no big political announcement — just a regular price bump tied to inflation. One minute your drink costs what it always did, the next it’s a bit more. Most people won’t notice until the total feels off.

This time, it’s spirits that take the hit. Anything with more than 10% alcohol by volume is now taxed at $107.99 per litre of pure alcohol, up from $105.98. That small change works its way down the line quickly — from the distiller to the bar, and finally, to your bill.

What That Really Means for Your Next Bottle

It’s easy to overlook the numbers, but here’s the reality: in a standard 700ml bottle of gin or whisky, about $32 now goes straight to tax, according to Spirits & Cocktails Australia. That’s a hefty slice, especially when you’re already paying premium prices for mid-range spirits.

Steven Fanner, from the organisation, points out that spirits are taxed far more than beer or wine, and the compounding hikes are hitting small operators hard. When margins are slim, a couple of dollars can matter more than you’d think.

The Late-Night Economy Feels the Squeeze

Mick Gibb, CEO of the Night Time Industries Association, says bars and clubs are feeling the weight of these regular tax increases. With city nightlife slowly bouncing back post-pandemic, every extra cost — whether it’s alcohol, wages, or rent — makes it harder to stay afloat.

He notes that cocktails are starting to feel like a luxury rather than a weekend habit. “We’ve seen some real progress in recent months to foster vibrant 24-hour cities,” he says to Yahoo Finance, “but for many consumers the rising price of a mixed-drink or a cocktail makes going out a luxury.

Beer Gets a Break — But Spirits Don’t

The federal government has frozen the excise on draught beer until August 2027, which sounds good on paper — but doesn’t apply to packaged beer or spirits. That “modest relief,” as they called it, is expected to cost $95 million over four years.

Most Australians don’t follow alcohol tax policy closely — and fair enough. But the effect is real. Your drink costs more, not because it’s better, but because the system quietly demands it, again and again.

The next hike? Already scheduled. Whether anyone will notice, or push back, is a different story.

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