SUBMISSION
TO THE HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON FAMILY AND COMMUNITY
AFFAIRS – INQUIRY INTO SUBSTANCE
ABUSE IN AUSTRALIAN COMMUNITIES
Executive Summary
DSICA’s primary goal is to promote the production and distribution
of quality spirit based products in Australia for the enjoyment and
responsible consumption of consumers.
DSICA is concerned about the misuse of alcohol in Australia
and notes that most drinkers consume responsibly. DSICA also notes
that it is clear from recent research that most misuse is not directly
associated with the consumption of spirits.
DSICA is also concerned about regressive taxation and
excessive regulation by governments based on ill-informed perceptions
about the level of harm associated with the consumption of spirits.
As a peak body, DSICA supports the right of the spirits
industry to produce, market and promote its products without undue
government regulation.
Recommendations
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| Alcohol
Taxation Inquiry (see Section 5) |
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That a comprehensive
inquiry into Australia’s alcohol taxation system should be conducted
to ensure that the appropriate level of Commonwealth taxation is being
applied to each of the major categories of alcohol; |
Taxation of Spirits (see Appendix B) |
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That
the overall future level of taxation of spirits should be reduced,
in particular, at least to remove the effect of the 80% increase in
the taxation of spirits, which occurred in 1978; |
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That
the future rate of excise duty for spirits should be reduced at least
by a dollar amount equivalent to the NTS component of the 1 February
2001 indexation increase; or that the Government adopt an adjusted CPI
approach for the period July 2000 to June 2004; |
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That the concessional
excise rate for brandy should be abolished and that the excise rate
for brandy should be set at the same rate as for spirits; |
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That the 5%
ad valorem protective tariff for imported spirits should be abolished;
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Taxation of Ready to Drink (RTD)
Beverages (see Appendix B) |
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That alcohol
beverages below 10% alcohol content should be subject to a similar
tiered excise regime as beer, and should have access to the same excise
free threshold of 1.15%; |
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That traditional
cider should be subject to a similar tiered excise regime as beer,
and other ready to drink products; |
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That the concessional
rates for draught beer should apply to draught RTD products. Further,
that RTD products should receive the same tiered treatment and the
same 1.15% excise free threshold that applies to draught beer. |
Taxation of Beer (see Appendix B) |
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That the dollar
rates of excise duty on the three tiers of beer products be amended
to remove the current incentive to produce higher alcohol beer products;
that lower-alcohol ready to drink products receive the same treatment
as lower-alcohol beer products under any changes in Commonwealth excise
duty that are made to replace the existing State low-alcohol subsidy
schemes; |
Non-Taxation Recommendations (see Section 6) |
| DSICA’s recommendations
in relation to non-taxation issues include: |
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That there should
be no introduction of a warning labelling system for alcohol products;
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That the current
system of industry self-regulation of alcohol advertising should be
maintained; |
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That there should
be no restrictions imposed on sponsorship of sporting or cultural
events by alcohol producers; and |
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That effectively
targeted public education campaigns be designed as opposed to broad
brush drug prevention campaigns. |
