|
•
|
Australia’s
alcohol taxation system unfairly discriminates against spirits (which
comprises 11% of the alcohol market, but pays 26% of non-GST revenue)
and favours wine (30% of the alcohol market, but pays 16% of non-GST
revenue); |
|
•
|
spirits
pays an unsustainably high 73 cents per standard drink; low-alcohol
packaged beer (21 cents) with full strength packaged beer (33 cents);
tap beer receives favourable treatment (23 cents for full strength)
and cask wine pays only 7 cents (when all compared on a non-GST tax
per standard drink basis). |
DSICA recommends:
|
|
•
|
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 product; |
|
•
|
that the overall
future level of taxation of spirits be reduced (either by a reduction
in the dollar volumetric duty rate or by a freeze or abolition of
indexation); |
|
•
|
that the 5%
ad valorem protective tariff for imported spirits and RTDs be abolished; |
|
•
|
that
brandy be taxed at the spirits rate; |
•
|
that
ready-to-drink alcohol products (RTDs) obtain complete taxation equivalence
with beer; |
|
•
|
that cider be
taxed on the same basis as RTDs; |
|
•
|
that the revenue
gained from taxing cider at the RTD rate, be used to provide RTDs
with a revenue neutral 0.1% abv concession, similar (but smaller)
than that which beer currently receives; |
|
•
|
that the revenue
neutral volumetric wine tax replace the existing value-based Wine
Equalisation Tax (WET); |
|
•
|
that a new volumetric
duty rate be set for all alcohol products of between 15% abv and 22%
abv; |
|
•
|
that
the Australian Taxation Office (ATO) be the single government agency
responsible for the collection of revenue and the administration of
imported and locally produced spirits, RTDs (and beer); |
•
|
that
the Customs Regulations be amended to ensure that importers/duty payers
of alcoholic beverages are required to certify as to the value for duty
of imported beverages which are subsequently re-exported by third parties
and subject to duty drawback claims; |
|
•
|
that the Budget
provide a greater level of detail regarding excise duty and customs
duty to be collected and duty drawback payments/cellar door rebates
to be made in relation to beer, spirits, RTDs and wine. |
